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Iceland PM hopeful on coalition deal on EU talks

28 Mar 2009 12:55:21 GMT
Source: Reuters

REYKJAVIK, March 28 (Reuters) - Icelandic Prime Minister Johanna Sigurdardottir said on Saturday she saw scope for a deal with her junior coalition partner on the crisis-hit island nation embarking on European Union accession talks soon.

Iceland's caretaker coalition government is split on whether to join the EU with Sigurdardottir's Social Democrats keen on accession while the Left-Greens oppose membership in the 27-nation bloc. But Sigurdardottir told news website Visir.is that a more conciliatory tone adopted by her coalition partner at its recent national conference ahead of early elections next month meant she was optimistic on prospects for clinching a deal to begin EU accession talks.

"We hope that we can soon enter membership talks with the EU. If the current government sticks together after the elections, I hope that the Left-Greens' opening at their national conference enables us to work things out so that we can start the talks relatively soon," she was quoted as saying.

"The Left-Greens want to bring the issue to a national referendum and that is exactly what we have wanted."

Many Icelanders believe EU membership could offer the chance of economic stability in the wake of a financial meltdown that has shattered the volcanic island's economy and brought down the Independents' coalition government earlier this year.

But entrenched opposition to entry from the likes of the country's powerful fishing lobby suggests membership is far from a foregone conclusion.

Recent opinion polls show the Social Democrats and Left-Greens commanding a solid lead in run-up to the April 25 elections of the 63-member parliament, the Althing.

On Friday, the North Atlantic country's biggest party, the opposition Independents, said Iceland should hold a referendum on starting EU entry talks and organise a second ballot on the terms offered, if voters back membership talks.

(Reporting by Omar Valdimarsson; Writing by Niklas Pollard)

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