[International] Decoding International / An Unsinkable Aircraft Carrier in the Arctic Circle? Iceland Ponders Joining the EU
bella@@ 央廣 新聞3h agoEdited
Reuters reported on the 16th that Icelandic Finance Minister Dadi Mar Kristofersson said that Iceland should join the European Union to help promote its economy, counter stronger trading partners, and withstand the increasingly fierce competition in the Arctic region.
Referendum on August 29th Concerns Iceland's Future Iceland will hold a referendum on August 29th on whether to resume accession talks with Brussels. This North Atlantic Treaty Organization (NATO) member is located on one of the most strategic key routes in the North Atlantic.
Iceland applied to join the EU in the year following the financial crisis in 2008 and began negotiations in 2010. However, these negotiations stalled after the parliamentary elections three years later. Reykjavik abandoned the previous negotiations after the rise of a Eurosceptic government in 2013. The then-government announced the end of negotiations with the EU in 2015.
According to a policy agreement by Iceland's center-left coalition government, a referendum must be held before the end of 2027 to decide "whether to continue negotiations on Iceland's accession to the EU."
Kristofersson's party recommends voters cast a "yes" vote. He believes that joining the EU will benefit Iceland's economic and security interests. "For a small, open economy, the core values have always been free trade and a rules-based order, because we do not have the capacity to defend our interests by force."
Trump's Greenland Policy Raises Concerns Kristofersson stated that a bilateral defense agreement with the United States in 1951 and its membership in NATO remain the foundation of Iceland's security. However, U.S. President Donald Trump's threat to acquire Greenland has altered this consideration to some extent.
This stalemate led to one of the most intense transatlantic confrontations in years, with the EU threatening comprehensive economic retaliation against Washington.
Kristofersson said that the United States believes its sphere of influence extends beyond Iceland and Greenland. "And that will not change."
Iceland is located between Greenland and Europe, in one of the most monitored sea areas of the Atlantic. For the country, this incident highlights its strategic importance. "We are an unsinkable aircraft carrier, and we will continue to be an unsinkable aircraft carrier in the future."
"Unsinkable aircraft carrier" was a description by World War II General Douglas MacArthur of Taiwan's strategic position, usually referring to islands or countries with important strategic locations in geopolitics.
Gylfi Zoega, an economics professor at the University of Iceland, pointed out that under the Trump administration, changes that might have taken 10 years to develop gradually have been compressed into 18 months. "Europe is now on its own. And we must now decide whether to be a US military base important for defending the US homeland, or to become part of Europe. And this is a major issue."
Upon joining the EU, Iceland, with a population of only 400,000, would be the smallest country in the EU, which has a population of 450 million. For the EU, Iceland's strategic location and rich fishing grounds make it an attractive candidate, although Brussels has been cautious to avoid being perceived as campaigning before the referendum.
Cost of Living and Fisheries Economy Considerations According to an analysis by "Viska," Iceland's largest academic alliance, Iceland is the country with the highest cost of living in the world, with a central bank interest rate of 7.75%. This volcanic island, featured in HBO's popular series "Game of Thrones," relies on fishing, aluminum, and tourism for its livelihood.
Asgeir Jonsson, Governor of the Central Bank of Iceland, recently stated that upon joining the EU, benefits would include reduced transaction costs, increased competitiveness, and lower interest rates. However, he also warned of potential inflation during the transition period and the need for in-depth labor market reforms regardless.
Kristofersson said that EU membership is expected to lower interest rates. "Iceland will never become cheap, but... it might become a bit cheaper."
He stated that the current Icelandic króna is of small denomination and prone to fluctuations. Joining the EU would open up three options: maintaining a free float, pegging to the euro, or adopting the euro directly.
The opposition argues that Iceland already enjoys single market access through the European Economic Area (EEA) and does not need to bear the costs and obligations of full EU membership. Furthermore, obtaining a permanent fisheries exemption from Brussels would not be easy.
Fisheries are crucial to Iceland's economy and national identity. The industry is concerned that joining the EU's Common Fisheries Policy (CFP) could mean opening Icelandic waters to foreign fleets.
Geopolitical Background Adds Variables As Iceland is already a member of the EEA and the Schengen Area (Europe's free travel zone), and its domestic laws have already adopted many EU regulations, Icelandic Foreign Minister Thorgerdur Katrin Gunnarsdottir stated in March that if Iceland's referendum supports resuming accession talks, negotiations could be completed within "1.5 years," making Iceland the 28th member of the EU.
The August 29th referendum is not a vote on joining the EU itself, and any agreement would require a second referendum.
Gunnarsdottir said that if the "yes" side wins and the government subsequently reaches an agreement with the EU, "we will hold another referendum on becoming the 28th member of the EU."
The Arctic is rich in resources and has become a hotspot for competition among the United States, Europe, China, and Russia. Considering the strategic importance of the Arctic, Trump's growing ambitions in the region, and his desire to acquire Greenland, Gunnarsdottir emphasized that resuming accession talks is in Iceland's interest.
She stated that given the current geopolitical context, building closer ties with the EU is necessary. (Editor: Zhong Jinlong)
Source Link: https://www.rti.org.tw/news?uid=3&pid=214975
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