What Ireland can learn from Iceland’s economic recovery

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There is much Ireland can learn from other European countries at this present moment.

For instance, Great Britain and Denmark, though members of the EU, have chosen to remain outside the European Monetary Union.  They have retained their own national currencies and full sovereignty over their monetary and fiscal affairs.

In addition, Denmark has successfully negotiated opt-outs from Europe in the fields of Common Defence, Justice and Home Affairs, and Union Citizenship.

Norway and Iceland are neither members of the European Union nor the Monetary Union.  However, they both belong to the European Economic Area (EEA) and enjoy the same advantageous terms governing internal markets as full EU member states. European countries can negotiate terms with the European Union that do not necessitate full membership or monetary union.

But such successful negotiations demand a clear vision for national solidarity and strong courageous leadership.

Then there is Iceland. Prior to her financial meltdown in 2008, 60% of her citizens favoured entering EU membership and monetary union.

Today, more than 70% oppose the move.  Why?  Because had Iceland been in the Eurozone when their banks collapsed, Brussels would have stepped in.

And in return for bailing them out, Brussels would have seized Iceland’s 200 mile limit fishing grounds – the richest in the world – and control over their thermal energy supply, which powers 90% of Iceland’s electricity.

In contrast, as a sovereign nation with sovereign control, Iceland has managed to successfully restructure her banking system, devalue her currency, boost her exports of fish, and restrict foreign imports. Three new banks have been established – one with state majority share.

Her GDP growth in 2009 was –6.5%.  Today it stands at 0%.  The unemployment rate in 2009 was 9.4%.  Today it has been reduced to 7%.  Then compare these figures with Ireland’s disastrous catalogue of economic blunders.

A large degree of resistance exists in each of these countries to further encroachments by Europe into their national affairs  - its immigration policies, labour rights, foreign affairs, and military development.

This prevailing climate of unease should be regarded in Ireland as a favourable omen for advancing a new vision.

Although it is by no means certain that such advances would be welcomed, considering Ireland’s current economic crisis and dysfunctional government, a strong case can be made for Ireland’s positive contributions to a new alliance.

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