Tom Hayes (Tipperary South, Fine Gael)
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Question 49: To ask the Minister for Foreign Affairs his views on the situation in Iceland; and if he will make a statement on the matter. [5332/09]

Micheál Martin (Cork South Central, Fianna Fail)
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I have followed recent developments in Iceland very closely. Iceland is a country with which Ireland has always had close and friendly relations. The country has been particularly badly hit in the current international financial crisis and this has led to pressure on its currency and severe problems for people and businesses there.

Iceland is also one of the European Union's closest partners. It participates fully in the EU's internal market through its membership of the European Economic Area and its citizens enjoy freedom of movement throughout the EU.

Following the resignation of Prime Ministers Haarde's Government on 26 January, a new Government, led by Ms. Johanna Sigurdardottir, took office and will govern until general elections are held. I wish Prime Minister Sigurdardottir and her colleagues in Government every success in dealing with the severe economic crisis with which they are now faced.

There has been speculation about the possibility of Iceland applying for membership of the European Union. The new Icelandic government has indicated that the Icelandic Committee on Europe would be mandated to complete its work on the attitudes of Icelandic interest groups to the European Union. This Committee is a cross-party grouping which also includes representatives of interest groups such as the Employers' Union, the Labour Unions, the Chambers of Commerce and the Association of Civil Servants and Municipalities.

The Committee is due to deliver a report on 15 April 2009 which will include an assessment of the prospects for cooperation with the European Union and Iceland's future options on currency issues.

In the event of Iceland deciding to apply for membership of the EU, the application would be considered in accordance with established procedures by the Union.

Iceland's recent experience with its currency brings home the advantages to Ireland in terms of monetary stability and economic security of belonging to the eurozone.