Europe Gets Cold Shoulder in Iceland
Top Candidates in Saturday's Parliament Vote Oppose Membership, Citing Continent's Crisis, in Shift
REYKJAVIK, Iceland—Four years ago, Iceland's electorate—seeking a harbor from financial turmoil—voted in a government that said entry to the European Union and euro zone would offer protection from currency volatility, punishing inflation and the embarrassment of a failed economy.
As the tiny Nordic nation prepares to hit the polls Saturday, the EU dream is wilting. Strong tourism and fishing, widening trade relationships and the fact that the crisis that brought down three Icelandic banks is getting cleaned up has fueled skepticism about the idea.
Recent events in Southern Europe have also dealt a blow to Iceland's EU proponents. Many prospective voters and top politicians point to the way Cyprus was handled as proof Icelanders would have little protection in the event of another crisis.
"The reasons for joining the euro didn't work out in Cyprus," Sigmundur David Gunnlaugsson, the head of the Progressive Party, said in an interview. "What the economic crisis in Iceland and Europe has taught us is the importance of being able to control your own destiny."
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