Government submits Protocol 35 bill to Parliament for fourth time

Foreign Minister Þorgerður Katrín Gunnarsdóttir has submitted a bill on Protocol 35 to the European Economic Area Agreement, mbl.is reports. The proposal is before Alþingi, Iceland’s parliament, for the fourth time.

The bill was first introduced during the 153rd legislative session in 2023. It was subsequently reintroduced during the 156th and 157th sessions, but failed to pass. It has now been submitted during the 158th legislative session.

In brief, the bill concerns amendments to Iceland’s 1993 law on the EEA Agreement.

Protocol 35 states that EFTA countries must ensure that properly implemented EEA rules take precedence over other legal provisions when they conflict. It also states that the EEA Agreement does not involve the transfer of legislative powers to EEA institutions.

When Iceland enacted the EEA Agreement, it was considered that a statutory interpretation rule in Article 3 of the EEA Act met these obligations. However, the EFTA Surveillance Authority, ESA, later determined that the rule was insufficient and raised concerns about Iceland’s implementation.

The bill has been controversial among MPs and legal experts. Supporters say the amendment is necessary to safeguard rights under the EEA Agreement, while critics have expressed concerns about its impact on sovereignty and Alþingi’s role as the country’s legislative authority.