Iceland Sees End of Krona Days as Joining Euro Only Option
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Iceland’s finance minister is preparing for the krona’s extinction as the government targets joining the euro area as the only option after phasing out capital controls.
“There’s a risk that while Iceland continues to use the krona we’ll always have capital controls,” Finance Minister Katrin Juliusdottir, a 37-year-old Social Democrat, said in a Sept. 28 interview in Reykjavik. “I’m not saying that it’s impossible to abolish the controls and re-float the krona by using other supportive measures. However, in my opinion, the smart thing to do is continue working toward European Union membership and euro adoption.”