Iceland's accession bid to EU welcomed by MEPs

The controversy of repayments to British and Dutch governments following the collapse of Icelandic banks needs to be resolved "bilaterally", adds the resolution. Iceland is also asked to cease all whaling.

MEPs endorse the decision by EU leaders on 17 June to open membership talks with Iceland, which submitted its application in July 2009. At the same time, Parliament asks Iceland to cease all whaling which is in contradiction with EU laws. The reservations the country has lodged with the International Whaling Commission should also be dropped, says the resolution, which was adopted by show of hands.

Iceland's accession would allow the EU to play a more active role in the Arctic Region, says the resolution drafted by Cristian Dan Preda (EPP), which underlines the country's "strong democratic culture". Iceland is already part of the Schengen zone and a member of NATO and has had a free-trade agreement with the EU since 1973.

On the Icesave bank issue, MEPs recall that Iceland is obliged to ensure payment of the minimum compensation to Icesave depositors in the United Kingdom and the Netherlands, as the EFTA Surveillance Authority said in its letter of formal notice of 26 May. In a referendum on March 6, Iceland's voters vetoed a repayment plan following the collapse of Icesave.

MEPs also point out that although, as a member of the European Economic Area, Iceland complies with most EU laws (notably single market legislation), it still needs to reform substantially the organisation and functioning of its financial supervisory system - "the key institutional weaknesses of the country's economy" - and the way judges, prosecutors and supreme judicial authorities are appointed.

The policy areas that will have to be fully negotiated with Iceland are agriculture, fisheries, taxation, economic and monetary policy and external relations.

Public support in Iceland for EU membership has declined since summer 2009, points out the resolution. MEPs ask the Icelandic authorities to initiate a public debate to address the concerns of Icelandic citizens regarding EU membership.

MEPs expect that the new EP-Iceland Joint Parliamentary Committee between the EP and the Althingi (Icelandic Parliament) will enhance an existing "fruitful collaboration" between the two sides.