Iceland considers admitting breach over Protocol 35

Icelandic authorities have not ruled out admitting a breach of the EEA Agreement in a case over Protocol 35, mbl.is reported. A memo from Foreign Minister Þorgerður Katrín Gunnarsdóttir to parliament’s Foreign Affairs Committee sets out two options: contesting the EFTA Surveillance Authority’s (ESA) claims or admitting a breach. It does not say which option the government will choose.

A request to have the case dismissed, proposed by Supreme Court attorney Jón Steinar Gunnlaugsson, does not appear to be under consideration. The minister plans to seek an extension beyond the end of the year to submit Iceland’s defence. The current deadline is November 30.

The memo says the government hopes ESA will withdraw its case if a bill from the foreign minister on Protocol 35 is passed. It states only that withdrawal may be considered. Gunnarsdóttir has previously expressed hope that ESA would drop the case, while acknowledging that nothing is guaranteed.

Three lawyers have been appointed to represent Iceland alongside the Foreign Ministry: State Attorney Fanney Rós Þorsteinsdóttir, and Supreme Court attorneys Helga Melkorka Óttarsdóttir of LOGOS and Jóhannes Karl Sveinsson of Landslög.

Jóhannes Karl’s appointment has drawn attention because he has publicly supported the legislative change sought by ESA. In an October 2023 newspaper article, he argued that the bill would fulfil a long-overdue commitment made by Iceland 30 years earlier. He also wrote that a case against Iceland before the EFTA Court would probably end with a ruling in ESA’s favour, while describing the constitutional questions as worthy of discussion.