Árni Páll joined ESA decision to sue Iceland

Árni Páll Árnason, a board member and vice-president of the EFTA Surveillance Authority (ESA), took part in its decision to sue the Icelandic state over what it says is inadequate implementation of Protocol 35, he told mbl.is. Árnason, a former leader of the Social Democratic Alliance, said his involvement did not raise questions about his impartiality.

He said the case falls under the remit of ESA president Arne Røksund, a Norwegian, but was brought before the board and decided at a meeting on Wednesday. Árnason said he was not at ESA when the case began or when the formal letter of notice was sent. In recent years, he said, his involvement had mainly focused on taking steps to ensure the rules were properly implemented.

Asked whether an Icelandic board member taking part in a decision to sue Iceland could undermine his credibility, Árnason said ESA’s governing structure includes three members, one from each country. He said all cases that reach the EFTA Court involve the three members, meaning one of them will always come from the country being sued.

At the end of 2025, Iceland had 71 open substantive cases with ESA, compared with 123 for Norway and 33 for Liechtenstein. But 22 Icelandic cases had reached the formal infringement stage, against 11 Norwegian cases and three from Liechtenstein.

Árnason said the figures included cases involving failures to implement rules. ESA refers far more such cases concerning Iceland to the EFTA Court than it does for the other countries, he said. Follow-up over implementation is much less common in the other states, and when it does happen, they respond much faster.