Although Iceland is not a part of the European Union, the government is considering adapting the Euro in the country. Richard Portes, the president of the Centre for Economic Policy Research in London and the prominent economist who made a report for Iceland nation’s economy for the chamber of commerce last year, says, there is a real possibility that Iceland can choose the Euro currency without joining the Union, but the country has to choose between the Icelandic Krona and the Euro soon. The head of Left-Green Movement and the chairperson of the Eur- sceptic opposition Steingrímur Sigfusson stated that if the country adopted euro, it would mean that Iceland would give up its own monetary policy control. He compared it to loosing the country’s self-confidence to control its own economic situation.
Iceland is not the first non-EU country that is considering euro currency. In 2002 Montenegro adopted the currency while being still a part of Serbia Union. Also Kosovo is using the Euro in some areas. Even though EU doesn’t like the practice, Iceland is one of the closest allies of EEA (European Economic Area) and this friendship can help to realize the considered Euro currency decision.