Polls & Research

Majority in Iceland Wants Currency Change

(Angus Reid Global Monitor) - Following Iceland’s massive financial collapse, many people in the country want to do away with the Icelandic krona and embrace an international currency, according to a poll by Capacent Gallup. 56 per cent of respondents support adopting a foreign currency, while 22 per cent would keep the krona.

Icelandic voters renewed the Diet in May 2007. Final results gave the Independence Party (SSF) 36.6 per cent of the vote and 25 seats, followed by the Social Alliance (SF) with 26.8 per cent and 18 mandates. Independence Party leader Geir Haarde retained his post as prime minister, and Social Alliance leader and former Reykjavik mayor Ingibjorg Solrun Gisladottir took over as foreign minister.

Iceland has been severely affected by a domestic economic crisis. In 2008, the country’s three major banks—Glitnir, Landsbanki and Kaupthing—collapsed following setbacks in their refinancing plans. The Icelandic krona lost 35 per cent of its value against the euro. The International Monetary Fund (IMF) and individual countries have provided $10 billion U.S. on loans to Iceland.

Thousands of people in the country of just over 300,000 have protested against the government’s handling of the crisis. On Nov. 28, Haarde—who has been criticized for a perceived lack of regulation of the banking sector—ruled out stepping down from his post.

Iceland—which is not a member of the European Union (EU)—has considered adopting the common European currency, the euro. Earlier this month, EU enlargement commissioner Olli Rehn rejected the idea, saying, "The EU’s stand is very clear. We do not support and would not accept a unilateral adoption of the euro. For a normal developed state in Europe, which might be aiming for EU membership, only the conventional way is possible, which is fulfilling the Maastricht Treaty."

Polling Data

Do you think Iceland should adopt an international currency, or keep using the Icelandic crown?

Adopt an international currency	56%
Keep using the Icelandic crown	22%
Other/Not sure	22%

Source: Capacent Gallup
Methodology: Telephone interviews with 1,200 Icelandic adults, conducted in January 2009. No margin of error was provided.