The incoming administration of Prime Minister Kristrún Frostadóttir, which takes over on Sunday, also said it will set up a panel of experts to look into the advantages and disadvantages of retaining the Icelandic crown over adopting the Euro.
The incoming administration of Prime Minister Kristrún Frostadóttir, which takes over on Sunday, also said it will set up a panel of experts to look into the advantages and disadvantages of retaining the Icelandic crown over adopting the Euro.
Background: Iceland is already a member of the European Economic Area, the European Free Trade Association and the Schengen border control area, and has sent an application for EU membership in 2009.
Accession negotiations proceeded at a careful pace, until the application was withdrawn in 2013 after a change of government.
Discussions about holding a referendum (to decide about restarting negotiations) have been ongoing since 2017.
It’s already a pretty cashless society (at least it was as a tourist) so the switch to the Euro would be pretty easy.
Discussions on retaining ISK over the euro are not based on how difficult it is to swap the currency or change systems that use cash.
It’s about retaining control over monetary policy, which is centrally decided in the eurozone.