[MrDresden]

" but it will not be devastating for the Icelandic economy if a portion of the quota is allocated to other EU members."

I don't think you realise how small the Icelandic economy truly is, and how big an effect fluctuations in fishing quote already have on it.

[Swenrekcah]

Oh I realise how small it is, which is why it makes better sense to join the EU.

[MrDresden]

So you say, but could you please name some examples?

Iceland already has full access to the single market and Schengen. Historically during times of economic shocks, having our own currency has been useful as it allowed for more flexibility (i.e currency controls, self governance over central bank rates etc). Would taking up the Euro make the island more resilient or less able to respond to shocks? Economists seem to not fully agree on the matter.

I have personally never bought into the scare mongering by the island's quota kings - and fully support making the fishing quota a nationally own resource along with propper utlization fee structures - but having a partner who's doctorate is in fisheries management and having personally had a lifelong interest in the matter my self, I don't believe for a second that our fisheries would be better off dictated by Brussels. I reserve the right to change my mind when, and if, a deal is ever presented that indicates otherwise.

Tourism is already back to pre pandemic levels, so I don't see how anything would change there. Iceland is and always will be a very expensive destination for tourists. Most things need to be shipped in, and joining the Union will not change that in any way.

Aluminum brings in a decent amount, via large scale electrical usage contracts made with the state owned electrical company. While these deals are secret, it is public knowlege that they are tied to the global price of aluminum. Having income in a foreign currency but expenditure in the domestic currency is surely a good thing for the government and all of it's agencies.

Would the government have access to better loans if joining the Union and taking up the euro? Perhaps. However, the loan rating for the Icelandic government is already fairly good, sitting at A+, that I'm not sure that there would be a big impact.

Just to make it clear, I am all for the European Union (heck, I even moved from Iceland and live on mainland Europe) but joining it isn't such a clear cut black/white calculus as your comments have made it sound like.

[Swenrekcah]

I don't believe I have said it is a black/white matter. However I do believe that on balance it would be better to be a full EU member instead of being a quasi-member without any say at all.

I also believe it would be better to be an EU member and part of the eurozone instead of having the flaky economic governance we have historically had.

Like you said the economic pillars of Iceland have become broader and more numerous than only the fisheries, and for all the talk of currency devaluation being beneficial, in effect it simply serves to allow the government and largest exporters offload all effects of economic downturns onto the Icelandic people and small businesses.

It is theoretically possible for Iceland to govern itself in such a way that it is stronger outside the EU than inside. Simply adhering to the Maastricht conditions would perhaps be enough, it just does not seem likely to me that there will ever be enough discipline to do so without actually joining the eurozone.