An article published in the Financial Times contends that even if
Iceland’s financial sector is crippled, other industries in the
country will help restore the economy.
“On top of its own fishing industry, Iceland designs and manufactures machinery for fisheries around the world,” reads the editorial in part. “The country enjoys a niche in transatlantic flights through Reykjavik and an associated tourist trade. … Even if the financial sector is all but wiped out, there is no reason why these other industries should not thrive again. Iceland is no banana republic. Its challenges are, however, formidable.”
The editorial contends that the best finanicial solution for Iceland would be to join the EU and take up the euro or, barring that, form a Nordic union with other Scandinavian countries.
“These reforms are necessary but not sufficient for recovery,” the article concludes. “Ms Sigurdardóttir must also lay down policies to ease the readjustment of Iceland’s real economy, so that people now losing their jobs can
again find work. Few of those jobs will be in finance. Fortunately,
Iceland still has a lot of other things to sell.”