Euro is no solution

The Icelandic Ministry of Industry yesterday introduced a new report on economic management and currency policies in Iceland. Two possibilities were pointed out in the report with regards to the continuation of the Icelandic krona or the introduction of the Euro by joining the monetary union of the EU. " But first of all we have to work out our economic management problems and it's no solution just to take up the Euro in a hurry," said Minister of Industry and Commerce Jón Sigurðsson. He does, however, believe that the Euro could be a realistic possibility once problems have been resolved.

Ingibjörg Sólrún Gísladóttir, leader of the Alliance Party believes that the Euro is a good solution. " I think that the Icelandic krona will be difficult for us as an unstable currency. Foreign investors would be more attracted by the stability of the Euro. The only foreign investors in Iceland right now are in heavy industry," she added. Representatives of the Left Green and Liberal party were totally against taking up the Euro, as Iceland would be dependent on international economic changes.