MEPs backed the recent decision by EU leaders to open accession talks with the Nordic country, which, following the devastation of its banking system in the global financial crisis, is hoping to join the bloc by 2012.
The resolution, drafted by Romanian MEP Cristian Dan Preda (European People's Party), notes the country's "strong democratic culture" and states that Icelandic membership would allow the EU to play a more active role in the Arctic region.
Iceland's membership of the European Economic Area (EEA) means that many of its laws are already in line with those of the EU. However, negotiations will be required in a number of policy areas – namely agriculture, fisheries, taxation, economic and monetary policy and external relations.
The organisation and functioning of the financial supervisory system – "the key institutional weaknesses of the country's economy" – will require particularly substantial reforms, MEPs said.
Public support falling in Iceland
Recognising a recent decline in public support in the country for EU membership, MEPs also asked the Icelandic authorities to instigate a public debate on people's reservations about joining the Union.
Speaking in the European Parliament, EU Enlargement Commissioner Štefan Füle admitted that accession talks faced potential hurdles.
"I share your concerns on the challenges stemming from the absence of national consensus and the relating low level of public support for membership," he said.
"But we cannot turn a blind eye to the fact that the accession road will hold a number of challenges. We are well aware that the issues of whaling or fisheries are sensitive for both Iceland and [EU] member states."
As for the controversial issue of repayments to the British and Dutch governments – who compensated 400,000 of their citizens after they lost deposits in a failed Icelandic bank during the 2008 financial crisis – the Parliament resolution states that it needs to be resolved ''bilaterally''.
This is in line with Füle's position, who stated in March that the possible reimbursement of the €3.9bn to the UK and the Netherlands was a bilateral issue that should not affect the country's EU accession prospects (EurActiv 09/03/10).
The whaling issue
Despite endorsing its membership bid, the MEPs also called on Iceland to cease its long-standing tradition of whaling, which contradicts EU laws and a ban established by the International Whaling Commission (IWC) in 1986.
In the EU, all ceteceans – which include whales, dolphins and porpoises – are legally protected. Despite opposition from several countries and environmental activists, Iceland permits commercial whaling in its waters, with a quota of 150 fin whales for 2009-2013.
Iceland wants the IWC to lift its moratorium on whale hunting, yet the call has met with opposition from the UK and Germany, among others. And in the resolution, the Parliament asked Iceland to drop its reservations about the ban.
