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Iceland submits proposal to parliament for EU talks

Published 05/25/2009, 12:38 PM
Updated 05/25/2009, 01:00 PM

By Omar Valdimarsson

REYKJAVIK, May 25 (Reuters) - Iceland's government submitted a proposal to parliament on Monday to authorise the start of negotiations for membership of the European Union, with the aim of clinching a majority vote within weeks.

A spokesman in the prime minister's office told Reuters the first round of a possible three debates on the proposal would likely take place in parliament on Wednesday and Thursday.

Prime Minister Johanna Sigurdardottir has said that if the plan is approved, Iceland could send an application for EU membership to Brussels as early as July.

"The Althing (parliament) resolves to direct the government to submit a membership application to the European Union and that following negotiations with the union a national referendum be held on the membership treaty," the proposal said.

Iceland's pro-EU Social Democrats have been hammering out details of the EU proposal, trying to win over their coalition partners, the Left-Greens, who have been sceptical of joining.

Support for negotiations on EU membership, and ultimately adopting the euro currency, has risen following an economic meltdown last year when Iceland's banks collapsed.

Finance Minister and Left-Green leader Steingrimur Sigfusson has said he would not oppose the proposal and Icelandic media have speculated about half of the party could vote in favour.

Approval to join could take years, although some officials say membership could be achieved as quickly as 12 months since Iceland is already a member of the European Economic Area.

Once given a green light from the EU, Iceland would hold a referendum on whether to join. Polls show the Icelandic population is evenly split over the issue of actual membership.

Those in favour say membership would foster economic stability and reassure foreign investors. The crown has yet to regain its footing after it nosedived in October.

But Iceland's powerful fishing lobby has reservations. Joining would require Iceland sign up to the EU's centralised fisheries policy and cede control of waters teaming with cod, haddock, herring and other lucrative catches.

Icelandic officials have said they could seek some flexibility from Brussels for their fishermen since its territorial waters do not border those of any EU member state. (Writing by Mia Shanley, editing by Myra MacDonald)

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