Thursday, April 2, 2015
Implications of the Icelandic government's EU missteps for its planned exit from capital controls.
The government has sought to make more definite the halt to Iceland's EU accession process, without seeking either parliamentary or popular endorsement of its formal withdrawal of the membership application. It has succeeded in damaging its domestic standing, while still leaving Iceland's EU status unclear. It has also made the political environment more volatile, when stability is needed to facilitate the government's planned exit from the capital controls imposed in the 2008 crisis.