Iceland Should Avoid Adopting Euro, Even if Joining EU, Says Business Leader

Halldór Halldórsson, CEO of Ískalk, stressed the importance of Iceland retaining its own currency, the króna, even if the country were to join the European Union. Speaking at a meeting of the "Áfram Ísland" (Forward Iceland) movement in Ísafjörður, Halldór, who previously served as mayor of Ísafjarðarbær and a leading figure for the Independence Party in Reykjavík, stated his current opposition to EU membership.

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It is important that Iceland refrains from adopting the euro if it joins the European Union.

Halldór's stance on the EU has evolved since Iceland's earlier accession talks, during which he participated. He explained that while initial prospects seemed favorable, a comprehensive view revealed that Iceland would contribute more financially to the EU than it would receive back, and would lose control over the prioritization of projects. He now advocates for maintaining an independent currency, suggesting Iceland should find a way, similar to Sweden, to avoid adopting the euro if it joins the EU.

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The result is always the same. Iceland pays more in than comes back, and we do not control what emphasis is placed on which projects at any given time.

He emphasized the króna's role as a "shock absorber" during difficult economic times, allowing people to maintain their jobs, whereas he believes the euro functions in the opposite manner. Halldór pointed out that Iceland already has access to the EU's internal market through the EEA agreement, which safeguards about 17% of the global economy for Iceland. He argued that full EU membership would close off Iceland's ability to forge independent trade agreements with the remaining 83% of the world market.

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The króna is a shock absorber when difficulties arise and people keep their jobs, but the euro works the opposite way.

Halldór concluded by stating that Iceland has historically demonstrated how small size can be a strength, building a remarkable society with significant income distribution and high living standards. He summarized his changed perspective: "The more I have gotten to know the EU and the euro, the less I have liked both."

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The more I have gotten to know the EU and the euro, the less I have liked both.