This story broke in UK newspaper The Guardian less than one hour ago, after it emerged this morning that Iceland is clear to begin formal accession talks with the EU.

The UK government has announced that it might decide to block Iceland’s application to the EU until the Icesave dispute is resolved, and the £2.3 billion (€2.75 bn, $3.4 bn) in question is settled. The Netherlands also took the same position as the UK.

UK foreign secretary William Hague stated earlier this week that “Iceland will have to recognise its obligations.” The prime minister of Holland, Jan Peter Balkenende, echoed William Hague’s sentiments in his remarks today. “Before the country becomes a member [of the EU], it needs to fulfil its obligations to the people of Britain and The Netherlands.”

Morgunblaðið also speculates that whaling could be another issue which could come up in negotiations. A few days ago, Germany expressed its wish that Iceland give up whaling in alignment with EU regulations.

Sources: guardian.co.uk, mbl.is
Image: jepoirrier

Labels: EU, icesave