Iceland's Finance Minister: Euro could anchor national consensus on economy

Icelandic Finance Minister Daði Már Kristófersson has suggested that adopting the Euro could provide a much-needed anchor for national consensus on economic policy. He acknowledges that a significant majority of the public is unhappy with the current government's performance in controlling inflation and interest rates.

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He believes that a fixed exchange rate for the Euro is a desirable anchor for national consensus on economic policy.

A recent poll conducted by Gallup for Viðskiptablaðið revealed that approximately 85% of Icelanders believe the government has performed poorly in its economic management. Kristófersson stated that achieving national consensus on economic matters requires a clear anchor, a role he believes a fixed exchange rate, such as the Euro, could fulfill.

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He says that national consensus on economic matters requires a clear anchor and that a fixed exchange rate played that role in the national consensus of the past.

He recalled that a fixed exchange rate played a similar role during past periods of national economic agreement. While acknowledging that the Icelandic Krona has remained relatively stable since the adoption of a new monetary policy, leading to lower inflation, Kristófersson maintains that the Euro offers a more robust solution for long-term economic stability and public confidence.

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He believes the Euro can become such an anchor, but admits that the Krona has been relatively stable since the new monetary policy was introduced, as inflation here is lower as a result.