Cameron to save Iceland?
UK may try to stop Iceland joining EU over bank collapse refund
Iceland was put on a fast track to join the European Union today, but the Cameron government served notice that it could block the country's membership unless it settled the £2.3bn Britain says it is owed as a result of the country's financial collapse two years ago.
Iceland is otherwise likely to have a relatively smooth passage through the negotiations because it is in effect already part of the European single market.
The biggest problem for Iceland joining may ultimately lie in popular opposition to pooling its sovereignty. Opinion polls recently have shown growing reluctance to join the EU.
Problem? The best chance for Iceland would be a better way of putting it. As part of the European Economic Area, Iceland is already a member of the EU's single market. It is also a member of the Schengen Area which removes border controls between member states. It has all the benefits, such as there are, with fewer of the costs. They would be mad to join just to adopt the euro.