This text has been translated from Norwegian with the assistance of GPT UiO.
– The committee has been given an interesting and challenging assignment, which it is enjoyable to take part in, says Steinar Holden, Professor of Economics at the University of Oslo.
More specific, the group’s task is to assess the advantages and disadvantages of retaining an independent currency – that is, keeping the króna – compared with joining a larger currency area, such as the eurozone.
The report is to be delivered during the first half of 2026 and is intended to provide a platform for debate on Iceland’s currency policy.
Moving towards the EU
– The purpose of the committee’s work is to provide relevant information ahead of the referendum in which Iceland will decide whether to apply for EU membership. This is something the current government promised during the election campaign, explains Holden.
The background to the group’s mandate is that Iceland’s negotiations with the EU on possible membership broke down in 2009. However, during the 2024 election campaign, the current government pledged to hold a new referendum in 2027 on whether to resume negotiations with the EU.
Holden is cautious about predicting whether this might also prompt Norway to hold a new referendum on EU membership.
– In Norway, there is still a clear majority against EU membership, and in that case there is little reason to hold a referendum. But that may change, and if it does, the question should be put on the agenda here as well, he concludes.
Knows Iceland
It is not the first time Steinar Holden takes on a duty there. Ten years ago (2015/16), he was commissioned by the Icelandic National Mediator to propose an improved model for wage formation on the island.
– Unfortunately, the reform work was shelved due to disagreements between the organisations over pensions and political changes.
– It has been exciting for me to have a new opportunity to examine Iceland’s economy and labour market, concludes Holden.
In good company
Today’s expert group is chaired by Catherine L. Mann, former Chief Economist at the OECD, who now serves on the Monetary Policy Committee of the Bank of England.
The other members of the committee are:
- Hilde Christiane Bjørnland, Professor at BI Norwegian Business School
- Steinar Holden, Professor at the University of Oslo
- Stijn Claessens, former Deputy Head of the Monetary and Economic Department at the Bank for International Settlements (BIS), now affiliated with Yale University
The commissioning body is Iceland’s Ministry of Finance and Economic Affairs.