- Title: ICELAND: Prime minister wants quick talks to enter EU and adopt euro
- Date: 26th April 2009
- Summary: REYKJAVIK, ICELAND (APRIL 25, 2009) (REUTERS) CITY HALL POLLING STATION PEOPLE COMING AND GOING INTERIOR/ PEOPLE QUEUING TO VOTE MAN REGISTERING TO VOTE PEOPLE QUEUING MAN PUTTING HIS VOTE IN THE BALLOT BOX PEOPLE QUEUING CULTURE HOUSE ICELANDIC PRIME MINISTER JOHANNA SIGURDARDOTTIR (SOCIAL DEMOCRAT ALLIANCE) ENTERING ROOM SIGURDARDOTTIR AT TABLE PHOTOGRAPHER AND PARTY WO
- Embargoed: 11th May 2009 13:00
- Keywords:
- Location: Iceland
- Country: Iceland
- Topics: Economic News
- Reuters ID: LVA1BG2M8GQP4FAQTJMON1CLD3Y3
- Story Text: Icelanders voted in an election on Saturday (April 25) set to give centre-left parties a majority for the first time after protests over an economic crisis toppled the previous conservative-led government.
Opinion polls show the Social Democrat/Left-Green caretaker government that stepped in after the old administration fell will win the vote.
The vote, called ahead of the 2011 due date, is set to be a rebuke to the leading centre-right Independence Party, which led the failed coalition government and has been blamed for the crisis.
The new government will need tough decisions to cut spending, raise revenues and find ways to reduce surging unemployment.
The parties also are expected to resolve differences and agree on holding entry talks to the European Union and later have a referendum, even though the Left-Greens are opposed.
Polls show Icelanders remain split, but Prime Minister Johanna Sigurdardottir, leader of the Social Democratic Alliance said that once they understood the benefits they would back EU entry.
She said that if Iceland entered the EU within a year to 18 months, it would be able to adopt the euro within four years.
"But we can, if we apply immediately for EU membership, within a time period of one to one and a half years, to finish membership talks of the EU and hold a referendum. And when we're in the EU, we are in the foyer of the European monetary cooperation and the adoption of the euro. And if we apply immediately, it is my opinion that we could adopt the euro within four years," Sigurdardottir told a news conference.
But she also said the country would not join the EU if certain criteria were not met.
"But it is quite clear that we will not join the EU unless the solutions would be acceptable for our fisheries and agriculture sectors,"
she said.
Icelanders took to the streets in January after their banks buckled under a heap of debt that was used to fuel aggressive overseas expansion into financial services.
The economy went into meltdown and its currency plummeted, forcing the government to agree a 10 billion United States dollar IMF-led rescue for this nation of 300,000.
Iceland still expects the economy to contract by more than 10 per cent this year and inflation was 15.2 per cent in March.
Voting began at 0900 GMT and was due to end at 2200 GMT.
First results are expected almost immediately after voting ends, although a final result is not due until early Sunday. - Copyright Holder: REUTERS
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