Interview with Iceland's Economy Minister: 'We Reacted Immediately to Symptoms of Crisis'
In late 2008 and early 2009, all three of Iceland's major banks collapsed amid the financial crisis. Now, the country is experiencing economic growth once again and unemployment is falling. Economy Minister Steingrimur Sigfusson explains to SPIEGEL how it was done.
SPIEGEL: Four years after Iceland's banks collapsed, the country has managed to overcome its financial crisis. How did you do it?
SPIEGEL: What can European crisis managers learn from the experience of your small country?
Sigfusson: We are not going to preach to Europe that we have found the cure all. But it was important that we didn't wait, but that instead we reacted immediately to symptoms of the crisis. In order to remedy the deficit, an increase in taxes to raise revenue was unavoidable, but savings measures were also necessary. We needed a mix of both and the strong conviction in preserving our welfare system.
SPIEGEL: What can you recommend to countries in crisis like Greece?
SPIEGEL: In the middle of the crisis, you wanted to lead Iceland as quickly as possible to the EU and the euro zone. And now?
Sigfusson: At the time, the willingness to join among the traditionally euro-skeptic Icelanders was high. Now the fear of Europe prevails again, especially when it comes to our fishing rights. Yet we haven't even talked to Brussels at all about the decisive acquis chapters regarding fisheries and food safety. For me personally, that is the real disappointment.
Interview conducted by Manfred Ertel
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