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Iceland's PM to seek vote on EU | Iceland's PM to seek vote on EU |
(about 14 hours later) | |
Iceland's new Prime Minister Johanna Sigurdardottir says her government will seek a parliamentary vote on membership of the European Union. | Iceland's new Prime Minister Johanna Sigurdardottir says her government will seek a parliamentary vote on membership of the European Union. |
She says she is confident of a vote in favour even though her own coalition partners are opposed. | She says she is confident of a vote in favour even though her own coalition partners are opposed. |
Mrs Sigurdardottir was elected last month on a wave of discontent over the dire state of Iceland's economy. | Mrs Sigurdardottir was elected last month on a wave of discontent over the dire state of Iceland's economy. |
Iceland has been traditionally Euro-sceptic, but support for joining the EU rose after last year's banking crisis. | Iceland has been traditionally Euro-sceptic, but support for joining the EU rose after last year's banking crisis. |
"There is a parliamentary majority for EU membership talks," she told a news conference. | "There is a parliamentary majority for EU membership talks," she told a news conference. |
"The application should be going to Brussels no later than July." | "The application should be going to Brussels no later than July." |
Parliament resumes | Parliament resumes |
Mrs Sigurdardottir said a bill authorising EU accession talks would be introduced when Iceland's parliament - the Althingi - resumed sitting on Friday. | Mrs Sigurdardottir said a bill authorising EU accession talks would be introduced when Iceland's parliament - the Althingi - resumed sitting on Friday. |
Her Social Democratic Alliance supports EU membership while her coalition partners, the Left Green Movement, oppose it. | Her Social Democratic Alliance supports EU membership while her coalition partners, the Left Green Movement, oppose it. |
Talks on forming a government hit a sticking point over whether Iceland should seek EU membership, and potentially embrace the euro - which many Icelanders see as the country's best route out of financial crisis. | Talks on forming a government hit a sticking point over whether Iceland should seek EU membership, and potentially embrace the euro - which many Icelanders see as the country's best route out of financial crisis. |
The economic meltdown late last year led to street protests | The economic meltdown late last year led to street protests |
Finance Minister Steingrimur Sigfusson said the two parties had "agreed to disagree" on the membership issue. | Finance Minister Steingrimur Sigfusson said the two parties had "agreed to disagree" on the membership issue. |
"This is a compromise," he said. "When it comes to voting on the resolution, the members of parliament will only be bound by their own conscience." | "This is a compromise," he said. "When it comes to voting on the resolution, the members of parliament will only be bound by their own conscience." |
A final decision on EU membership would be put to Icelanders in a referendum, the government said. | A final decision on EU membership would be put to Icelanders in a referendum, the government said. |
EU Enlargement Commissioner Olli Rehn said in January that if Iceland applied soon, it could be fast-tracked to join the bloc at the same time as Croatia, which is expected to become a member by 2011. | EU Enlargement Commissioner Olli Rehn said in January that if Iceland applied soon, it could be fast-tracked to join the bloc at the same time as Croatia, which is expected to become a member by 2011. |
Banks collapse | Banks collapse |
The Nordic island, which has a population of 320,000, had one of the world's highest standards of living until the global financial crisis led to the collapse of the country's banking system late last year. | The Nordic island, which has a population of 320,000, had one of the world's highest standards of living until the global financial crisis led to the collapse of the country's banking system late last year. |
Unemployment and inflation have both spiralled while the value of the currency, the krona, has plummeted. | Unemployment and inflation have both spiralled while the value of the currency, the krona, has plummeted. |
Last October the government took control of Iceland's three largest banks and later received a $2.1bn (£1.4bn) loan from the International Monetary Fund (IMF). | Last October the government took control of Iceland's three largest banks and later received a $2.1bn (£1.4bn) loan from the International Monetary Fund (IMF). |
The new government says its key goal is to rebalance the state budget by 2013 and that it remained committed to an economic recovery programme agreed with the IMF. | The new government says its key goal is to rebalance the state budget by 2013 and that it remained committed to an economic recovery programme agreed with the IMF. |
"I have very high hopes for this government," said Mrs Sigurdardottir. "We are taking office in extraordinary circumstances and have immense tasks ahead of us." | "I have very high hopes for this government," said Mrs Sigurdardottir. "We are taking office in extraordinary circumstances and have immense tasks ahead of us." |
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