Danish economist calls for Iceland to join EU without euro

Danish economist Lars Christensen wants Iceland to join the European Union without adopting the euro, mbl.is reports. He made the remarks at a meeting of SFF on Monday about a proposed tax increase on companies in the financial sector.

Christensen, who is now managing director of PAICE, has advised on Icelandic economic affairs for around two decades. He is particularly well known in Iceland for warning about the state of the Icelandic market as early as 2006, drawing significant attention and some strong reactions.

Christensen was hesitant to tell the meeting about his position on the referendum on whether to continue accession talks with the European Union. He said he was very glad not to have been in Iceland a month earlier, when the debate was at its most intense.

He also expressed concern about the state of politics. In his view, the increased speed associated with social media has had negative effects beyond the younger generation, as politicians receive information through social media and distribute it there as well.

He said major decisions, such as the proposed increase in bank taxes, should be approached more slowly and discussed with more authoritative voices. Ministries should also hire more economists and lawyers, he said, at the expense of communications officers.