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Iceland Sees End of Krona Days as Joining Euro Only Option

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.”