In 2008, Iceland denounced Denmark, Sweden and Great Britain for turning their backs on the country during the financial crisis it was undergoing at the time. Additionally, the International Monetary Fund was hesitant to give financial support to the bankrupt country.
This article was published when Iceland’s bank was nationalized and the country found itself plummeting into bankruptcy. It demonstrates how important of a role the economy plays in the stability of the European Union. Iceland’s financial crisis raised issues about the extent to which EU member states should be bound to other members. Were Denmark, Sweden and Great Britain rightly minding their own business or should they have provided aid to Iceland?
Although Iceland underwent a peaceful regime change between 2009 and 2011 in response to the nationalization of its bank, the parliament originally blamed for the crisis has returned to political stage in recent months. With this in mind, how much economic autonomy can EU member states have? Perhaps it is difficult for Iceland to reject a central banking system if the Union is based around such a system.