Should Icelanders Push for E.U. Statehood Anyway?

In late April 2013, a slight majority of Icelanders who voted in the parliamentary election went for a return to the center-right Independence and Progressive parties even though they had been responsible for the banking crisis that bankrupted Iceland. The two parties promised to forgive or renegotiate the Icelanders’ personal debt and end the four years of austerity by lowering taxes, ending capital controls and stimulating foreign investment, according to the New York Times. The center-left governing parties, including the Social Democrats, had cut spending and raised taxes, making the carrots being offered by the center-right parties all that more alluring. Although not the main issue of the election, the prospects for Iceland becoming a state in the European Union lessened significantly with the ousting of the center-left government. Unlike that government, the center-right parties voiced skepticism and advocated a referendum before any the government would take any further steps. In the wake of the election, it might be helpful to reflect on whether Iceland should become a state. After going over some economic and political factors, I want to highlight subtler factors whose influence is typically understated in newspaper headlines.

The complete essay is at Essays on Two Federal Empires.

From this perspective, it can be said that Britain are Ireland are part of Europe, but what about Iceland? Source: luventicus

Should Iceland Be a State in the E.U.?

Is a state’s strategic interest simply the sum total of political and economic expediency? In the case of Iceland becoming a state in the E.U., the suspension by the Icelandic government of talks that began after Iceland’s banking sector took a major hit in 2008 may have been a political means of countering the “tough competition” from parties that have been skeptical about the sovereign state joining the Union. With parliamentary elections coming up, the parties in the government did not want to be found wanting on the unpopular side of a major question.

The complete essay is at Essays on Two Federal Empires.