Morgunblaðið reports that coalition talks between Social Dems and
Leftist-Greens are still ongoing, with no resolution yet reached with
regards to the EU.
But the EU wasn’t the only topic on the table – the parties also discussed employment, job creation and changes to the administrative structure. On most of these issues, the Leftist-Greens and Social Dems are in relative harmony. It’s the EU that’s proving to be difficult.
The Leftist-Greens believe that Iceland’s economy would be best served
outside the EU, while the Social Democrats believe the adoption of the
euro and joining the EU would be the surest way to stabilize the
economy. Many Icelanders worry they will lose control of their fishing
waters or face rising unemployment if they join, even though some
political thinkers believe it would be possible to negotiate with the
EU on the fishing waters question.
The chairmen of both parties have expressed confidence that they will be able to reach an agreement on the matter, and establish a coalition agreement, but also say that they are in no rush.