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### Viewing cable 09REYKJAVIK123, ICELAND: PARLIAMENT PASSES RESOLUTION TO APPLY FOR

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
09REYKJAVIK123 | 2009-07-16 17:05 | 2011-01-13 05:05 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Reykjavik

`

    VZCZCXRO9391
    OO RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
    RUEHLN RUEHLZ RUEHNP RUEHPOD RUEHROV RUEHSK RUEHSL RUEHSR RUEHVK
    RUEHYG
    DE RUEHRK #0123/01 1971751
    ZNR UUUUU ZZH
    O 161751Z JUL 09
    FM AMEMBASSY REYKJAVIK
    TO RUEHC/SECSTATE WASHDC IMMEDIATE 4114
    INFO RHEHNSC/NSC WASHINGTON DC IMMEDIATE
    RUEHZL/EUROPEAN POLITICAL COLLECTIVE
    RUEAIIA/CIA WASHDC

` `

    UNCLAS SECTION 01 OF 02 REYKJAVIK 000123

    SIPDIS

    SENSITIVE

    STATE FOR EUR DAS GARBER, EUR/NB, INR/B
    NSC FOR HOVENIER

    E.O. 12958: N/A
    TAGS: PGOV PREL PINR EUN IC
    SUBJECT:  ICELAND: PARLIAMENT PASSES RESOLUTION TO APPLY FOR
    EUROPEAN UNION MEMBERSHIP

    ¶1. (U) Summary: The Icelandic parliament passed a resolution on July
    16 to enable the government to start accession negotiations with the
    European Union (EU). The parliament approved the controversial
    legislation with a slightly larger majority than expected, and
    fulfills the Social Democratic Alliance's number one campaign
    promise. The second reading of the resolution took almost a week and
    was at times tumultuous. The GOI will very soon submit a formal
    application for EU membership to Brussels, after which the Council
    of Ministers will refer the application to the EU Commission. The
    process of negotiations could take up to three years.  But before
    Iceland joins the EU, the final negotiated agreement must be
    approved in a national referendum, which is by no means certain at
    this date. End Summary.

    ¶2. (U) Iceland's parliament voted on July 16 to authorize the
    government to begin accession talks with the EU. Members of
    parliament voted 33 to 27 in favor of an EU application following a
    final round of debates that lasted for almost a week.  The margin of
    victory was a bit larger than had been expected, with three MPs
    abstaining from the vote. Notably, one Independence Party (IP)
    Member of Parliament (MP) voted in favor, and the IP deputy chair
    abstained.  Pundits had expected the IP to present a unified
    opposition to the EU resolution. The vote paves the way for an
    application to be sent to Brussels later in July and gives PM
    Johanna Sigurdardottir a major achievement - one which she has
    campaigned for vigorously since becoming PM in February. If the
    application is approved by EU member states, Iceland would put the
    question on actual EU membership to voters in a referendum.

    ¶3.  (U) When the Social Democratic Alliance (SDA) and the Left-Green
    Movement (LG) formed a majority coalition government on May 10, they
    announced in their policy statement that the Foreign Minister would
    submit a parliamentary resolution on Iceland's application for EU
    membership in the first days of the new parliament, which convened
    for its summer session on May 15. The SDA had made EU membership a
    key issue in their electoral campaign. The two parties agreed that
    if the resolution passed and accession negotiations would ensue,
    then the negotiated accession treaty would be put to a national
    referendum, possibly as early as 2010.

    ¶4.  (U) Soon after the Foreign Minister submitted the draft
    resolution in parliament, the IP and the Progressive Party (PP)
    submitted a counterproposal on EU membership, claiming that the
    government's resolution presented insubstantial arguments in favor
    of membership. The IP-PP resolution called for a more detailed
    explication of Iceland's most important interests in accession talks
    with the EU, a road map on the arrangement of accession talks, and
    an explanation of what needs to be done to ratify an accession
    treaty. The parliamentary Foreign Affairs Committee discussed both
    resolutions and tried to merge them into one, which the parliament
    passed today. Later, the IP proposed an amendment requiring a double
    referendum, (i.e., one on whether to start accession negotiations
    and one on the negotiated accession treaty), but this amendment was
    voted down today.

    ¶5. (U) Today's resolution had to pass two readings before the vote.
    The first reading continued for two days, but the second lasted for
    more than six. Speaking time was doubled by the Speaker of the
    Parliament to give everyone a chance to have their say. The second
    round of debate was chaotic, and often interrupted by the emergence
    of secret documents that the MPs said had to be reviewed before
    continuing the debate.  When the Parliamentarians took the floor,
    some MPs towed the party line, while others said they thought it was
    in Iceland's best interest to see what kind of an accession treaty
    could be negotiated. A few talked about the positive history and
    impact of the EU, while some likened it to the Soviet Union. Several
    Althing members, especially from the Citizens' Movement, tried to
    engage in horse trading by threatening not to support the resolution
    unless the government dropped its controversial Icesave bill, which
    is also being debated in parliament. The media had a heyday
    speculating on how those MPs who had not yet made up their mind were
    going to vote.

    ¶6. (U) The application for EU accession will first go to the Council
    of Ministers which will then refer the application to the EU
    Commission, a process that will likely take up to six months. After
    that, the actual accession talks will commence and they can take up
    to three years.  This time could be shortened because of Iceland's
    prior participation in many areas of the EU through its membership
    in the European Economic Area. Without a doubt, the most challenging
    subjects will be the fisheries sector and agriculture.  As of now,
    Iceland does not fulfill the Maastricht criteria for adopting the
    euro as its currency.

    ¶7. (SBU) Comment - This was a big victory for Prime Minister Johanna

    REYKJAVIK 00000123  002 OF 002

    Sigurdardottir and her SDA party - both have had difficult sledding
    over the last couple of weeks. The Prime Minister summed up the
    situation nicely in a radio interview immediately after the vote,
    "This is the result we were hoping for... It's a great day for us."
    Sigurdardottir's enthusiasm may not be shared by a majority of
    Icelanders.  Recent polls show that an accession treaty would be
    turned down in a national referendum if a vote were held today.
    Clearly, the economic situation in Iceland in two to three years'
    time will have a major impact on the final decision. End Comment.

    KLOPFENSTEIN

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