Iceland's parliament voted by a narrow margin Thursday to apply for membership in the European Union, moving to relinquish some of the recession hit country's cherished independence in the name of stability. In a fiercely debated motion, members of Iceland's parliament, the Althingi, voted 33-28 to start membership talks with the EU. Two lawmakers abstained. - Human Events
Dominant Social Theme: Iceland takes the responsible step.
Free-Market Analysis: Why is Iceland joining in the EU? Yes, the country is broke and facing a financial crisis. But if Iceland is joining the EU for stability, one wonders at the definition. As we have chronicled via various articles, the EU provides stability if one seeks fairly high interest rates and increasing animosity amongst the various participants. The Eastern European countries are in hock to the Western European countries. The Western European countries are bickering with increasing vociferousness about where rates ought to be set and how much "stimulation" the larger economy needs.
The EU was birthed as a trade association but now has nationalistic expectations. The bureaucrats in Brussels want a standing army, a fully empowered congress and a constitution. But these aspirations are increasingly at odds with citizens themselves. The citizens of the EU have turned down the opportunity to give the EU expanded constitutional powers on several occasions recently.
So Iceland's move to integrate with the EU seems a bit curious to say the least. Obviously there is an Icelandic faction that has wanted integration and the current financial crisis has given them the opportunity to move forward with such a union. But the EU may not be so stable as some in Iceland may believe. The current stresses and strains are pulling the EU apart.
Conclusion: There is more to the story than Iceland moving toward the European Union. The EU itself is not an entirely stable environment at this point and it will be interesting to see if Iceland's merger with the EU is consummated. There are likely complications coming. The vote by Iceland to join the EU may seem like an affirmation of the EU's prospects. But perhaps it may mark a turning point - a high water mark after which the tide begins to recede.
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