Reykjavík mayor rejects EU accession talks as economic priority

Reykjavík Mayor Hildur Björnsdóttir says Iceland should not begin accession talks with the European Union, arguing that the government must instead address the country’s worsening economic problems, mbl.is reports.

She said the government was neglecting economic management while focusing on EU membership. Björnsdóttir said her political majority had received a clear mandate in the latest local elections to make difficult changes to the city’s operations.

“We have chosen to face reality, unlike the government parties,” Björnsdóttir said. She accused the government of having given up on its stated goals of reducing inflation and interest rates and restoring economic stability.

Björnsdóttir referred to surveys showing that 85% of the public gave the government a failing grade for its economic management. She said high interest rates were placing a heavy burden on households, companies and municipalities, including Reykjavík.

“The most urgent task in these circumstances is therefore certainly not to begin talks on EU membership, but for the state, municipalities and the social partners to unite in a rapid offensive against inflation and high interest rates,” she said.

She also rejected the idea that starting accession talks would provide a quick economic solution. Any adoption of the euro, she said, would depend on Iceland meeting requirements related to inflation and economic management, which would have to be achieved independently.

Björnsdóttir said she had long believed that the European Economic Area agreement had served Iceland well and that the country should focus on strengthening that cooperation rather than pursuing EU membership. Her comments came ahead of a referendum on Saturday.