The debate about the European Union tends to get stuck on individual items — quotas, tariffs, the króna. Here is the big picture: what we would gain from membership, in brief, with links to the detailed answers.
Our wallets
- Lower interest rates. With the euro we would borrow at rates other
Europeans take for granted. The gap between Icelandic and European mortgage
rates is the single largest cost item for an ordinary family.
→ What would the euro mean for my wallet? - Lower inflation. Inflation in the eurozone has averaged about half of ours,
with far smaller swings. Goodbye to the inflation rollercoaster.
→ What would the euro mean for my wallet? - No indexation. Indexed loans are an Icelandic peculiarity, born of the fact
that the króna cannot be trusted. With a stable currency the reason for them
disappears — and mortgage debt can no longer mutate overnight.
→ When and how would we adopt the euro? - Safer pensions. Our pension funds hold enormous claims on the future — in
krónur. With the euro, our savings give us direct purchasing power in the
huge, stable economy of Europe and indeed the whole world.
→ Are our pensions better protected with the euro? - More stability. A predictable exchange rate, predictable interest rates,
predictable prices. Businesses can plan and households can organise their
future without the króna upsetting the calculation.
→ What would EU membership cost?
Trade and competition
- Lower tariffs. Tariffs on food and agricultural products from Europe fall
away, and customs clearance on imports and exports becomes a thing of the past.
→ Would anything change about freedom to travel and customs? - Cheaper food. Removing tariffs and increasing competition could save an
average family tens of thousands of krónur a month.
→ Would food become cheaper? - Easier market access. We are already in the single market through the EEA,
but outside the customs union. Full membership removes the last barriers — the
paperwork, the tariffs, the currency risk.
→ I run a small business. What changes with membership? - More competition. The same currency and the same rules as 350 million
neighbours make it easier for foreign companies and services to do business
with us — and reverse the growing drift toward oligopoly.
→ I run a small business. What changes with membership?
Democracy and governance
- More sovereignty. Today we adopt a large share of EU rules without a vote.
Inside the Union we would have a seat at the table: a vote in the Council,
a Commissioner, and members of the European Parliament. That is more
sovereignty, not less.
→ Would we lose our sovereignty?
→ Would a small country have any say? - More professional governance. Membership comes with clear requirements on
transparency, professional standards, oversight and the rule of law. Those
requirements apply to us as to everyone else — and that is an advantage for
the public in a small country where personal connections, cliques and
arbitrary decisions have sometimes counted for more than competence.
→ Do we have to adapt to the EU before we join?
Solidarity and security
- Solidarity with a continent of democracy, culture and human rights. We
share values, history and culture with Europe. Membership is a statement of
where we want to stand in a world where great powers show small nations ever
less consideration.
→ Isn't it just the "commissars in Brussels" who run the EU? - A more secure existence for a small nation in the middle of the North
Atlantic. With membership, 27 states commit to coming to our aid if we are
threatened, whether by force or by economic coercion. The European Union has
stood firmly behind Denmark on Greenland — which gives pause for thought about
what can await small nations that stand alone.
→ Would the EU make us safer?
What does it cost?
Membership is certainly not free. Direct membership contributions would be higher than our EEA payments today, we would need to negotiate on fisheries and agriculture, and the euro would not arrive on day one. These topics have their own place on this site — see What would EU membership cost?, What about our marine resources? and When would we adopt the euro?.
In short: Membership is not about one item but about the whole picture: a cheaper and more predictable daily life, a voice in decisions that affect us anyway, and an alliance that stands with us when it matters. Every item above has a fuller answer; click, read and make up your own mind.
Sources and further reading:
- Government of Iceland — EU: Referendum on resuming accession talks (background material from the Ministry for Foreign Affairs).
- Central Bank of Iceland — Iceland's currency and exchange rate policy options (2012) (in-depth analysis of the pros and cons of the króna and the euro).
- European Union — Treaty on European Union (TEU), Article 42(7) (the mutual defence commitment of member states).
- Eurostat — HICP inflation in the euro area (for comparison with Icelandic inflation).
- Statistics Iceland — Consumer price index (inflation trends in Iceland).