On May 27, 2016, Statistics Iceland (the national statistical agency) released the news – Iceland economy to grow by 4.3% in 2016. The nation is enjoying strong household consumption and investment growth and tourism is driving export growth. Inflation is low and the exchange rate, which depreciated sharply during the crisis, is stable, if not steadily appreciating again. Compare that to the Eurozone Member States, which are in varying states of moribund.
We also learned this week that the Icelandic government has increased the intensity of its capital controls and is forcing speculative capital to behave itself. For those who think the state is dead, particularly those on the Left who promote grand (delusional) schemes of a Pan Europe Democracy as the only way of taking on the powers of corporations, Iceland proves that neo-liberalism has to work through the legislative capacities of sovereign states.
Corporations do not have armies (usually). They have to manipulate the legislative process in their favour. The currency-issuing state is still supreme – globalisation or not – and the Right know that. The Left have been duped into believing otherwise. That is what has to change before progress is made in restoring some decency to the policy making process around the world.
This article shows that the whole idea that you have to be part of the EU in order to survive is complete rubbish (Brexit scaremongering anyone?). Iceland said no to the Euro and the bankers and now they are doing well, unlike the other EU countries!
If only Greece had done what it was supposed to do years ago (get out of the Euro), it would be at the top of the group in recovering as well. Instead, they are at the bottom.