The EU is Iceland´s most important trade partner,

Caspian Energy (CE): Mr. Benediktsson, how would you describe the macroeconomic situation in the financial market of Iceland? What are your forecasts for coming 3-5 years? 

Bjarni Benediktsson, Minister of Finance and Economic Affairs of Iceland: Iceland is experiencing strong growth and a relatively good external and internal balance. The economy has surpassed its pre-crisis levels and is expected to grow by around 4% this year and 3% in 2016, driven by rising private consumption and investment. We expect relatively strong growth for the forecast period, but uncertainties remain considerable, both due to international and domestic factors.

CE: Is Iceland ready to join the eurozone and use euro as a currency? What is Iceland’s position on this issue? 

Bjarni Benediktsson: Iceland has no intentions to join the European Union or to take up the euro. The rapid improvement in the government’s finances will soon put Iceland in a favourable fiscal position compared to most other European economies. Iceland already fulfils the fiscal balance rule of the Maastricht criteria and with the ongoing reduction of government debt it will soon be within the reach of its debt criterion. According to the fiscal rules proposed in a bill for a new organic budget law presented to Parliament and now in the final stages of deliberation the objective is for total surplus to be positive over any five year period, total deficit in a single year can never exceed 2.5% of GDP and for debt to GDP ratio to drop below 30%. This development will make Iceland fulfill the obligations of the Maastricht Treaty regarding fiscal policy.