Economist warns EU market barriers hurt Faroese economy

Limited access to the European Union market is affecting the Faroese economy because fish products are not being processed further in the Faroe Islands, economist Magni Laksafoss told KVF.

Laksafoss was speaking after Prime Minister Beinir Johannesen discussed improved access to the EU market with European Commission President Ursula von der Leyen.

He said the EU wanted the raw material to create jobs within the bloc.

“If we had tariff-free access to the EU, the jobs would be in the Faroe Islands, and that would have had a major impact on the Faroese economy,” said Laksafoss, who holds a doctorate in economics.

Efforts to secure better market access have made little progress. The Confederation of Faroese Employers has also expressed surprise that the Faroe Islands have been unable to obtain improved access.

Johannesen was not particularly optimistic after his meeting with von der Leyen.

Bakkafrost is following the Faroese authorities’ work to improve access to the EU market, according to the company.