Iceland cannot join the Economic and monetary union of the European Union, EMU, unless the capital controls are relieved. A special work group of Icelanders, the EU and the IMF is now working on what is the best way to relieve the capital controls.

The Icelandic government has decided to slow down the negotiations regarding entering the European Union until after the parliamentary elections in April 2013. 

Today the Wall Street Journal published an interview with Ms. Katrin Juliusdottir, the Minister of Industry, Energy and Tourism, but she is currently on maternity leave. Ms. Juliusdottir says that Iceland should join the European Union.

The Ministry of Finance and Economic affairs in Iceland recently reported on their website that it has handed in a Pre-Accession Economic Programme to the EU Commission. The report is a part of Iceland‘s accession process and sets out Iceland‘s main economic priorities in four main chapters.

Yesterday European Union lawmakers voted to change the troubled fisheries policy of the union. Environmentalists and many others welcome the change. Many Icelanders have been against joining the EU because of it's fisheries policy, that might change now. The likelihood that Iceland joins the EU is now higher.

Plan B, that will be used if Icelanders say no to joining the European Union, will mean a worse welfare system, lower wages and worse competitive environment, says chairman of the Social Democratic Alliance and member of the Icelandic parliament. He says that it is childish to think that it will be possible to lower interest rates and the Icelandic-Premium only by getting rid of price indexation of loans.

Around 63% of Icelanders do not want Iceland to join the European Union, according to a new poll by Market and media research (MMR). 24% do want Iceland to join. Men are more likely to be in favor of joining, 28.5% of men want to join the union but only 19.2% of women.

The largest political party in Iceland decided at it's national meeting yesterday to retract the European Union membership application. The party has around 35-40% support according to recent polls. The members of the party did not all agree on this decision.

Those who are in favor of finishing the EU membership negotiations have grown in numbers, according to a new poll that Capacent Gallup did for the organization Yes Iceland (Já Ísland). That is an organization for those who support the EU and want Iceland to join the union. 

Mr. Carl Bildt, minister of foreign affairs in Sweden, said that Sweden experienced increased influence internationally after joining the European Union. He said that there is no doubt that the sovereignty of nations increases by joining the EU, it does not decrease. Iceland's sovereignty is reduced under the current circumstances, and Iceland has to comply to the EEA agreement without having anything to say about the result.