Minister of Business Gylfi Magnússon believes Iceland needs to adopt a
more stable currency, and says the euro would be the “logical” choice. At the same time, he believes it is doubtful that Iceland will join the EU, primarily due to Iceland’s fishing waters – one of the backbones of the economy – which it would be obliged to share with other nations if it joined the EU.
“And if we want a reliable currency with a reliable central bank, the euro seems to be the most logical choice.” Magnússon told Morgunblaðið “There should be other options, among them some sort of alliance with Norway, but my opinion is that such a thing would be far-fetched,” refering to an idea proposed by some – including Minister of Finance, Agriculture and Fisheries Steingrímur J. Sigfússon – that Iceland could enter into an economic agreement with Norway.
While it would take time to adopt the euro, says Magnússon, one way to expedite the process would be to enter into initial EU membership talks.
“Being on the way, via the foredeck, towards taking up the euro, would send a clear message and hopefully calm the market.”