Currency Restrictions at Odds with EEA Agreement? Skip to content

Currency Restrictions at Odds with EEA Agreement?

Currency restrictions on the Icelandic króna, implemented by the Icelandic government late last year, are a hindrance for free transfer of capital and freedom of establishment and therefore at odds with the EEA agreement, according to law professor Stefán Már Stefánsson.

Stefánsson believes Icelandic authorities should negotiate with the European Union on ways to strengthen the ISK and base their arguments on the agreement. “In my opinion, our opposite parties are obligated to negotiate and find a solution so that the EEA agreement can work as efficiently as possible.” Morgunbladid reports.

If the EU is unwilling to negotiate on Iceland’s terms, there are no provisions in the agreement with the European Economic Area that prevent Iceland from adopting the euro unilaterally, Stefánsson claimed.

The European Commissioner for Enlargement Olli Rehn has made it very clear that the EU is against Iceland adopting the euro without joining the union.

Click here to read more about Rehn’s statements.

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