Tuesday 20 March 2018

Iceland model not for Ireland

Madam -- We are invited by some voices on the No side to follow the example of Iceland, which is depicted as successfully coming through a banking crisis and living happily ever after. This is a misleading argument.

The Icelandic economy is locked within strict capital controls which restrict the free flow of capital, and foreign and domestic investment in Iceland suffers as a result. Purchasing power is down while prices are up by a multiple of what other Europeans have experienced.

Iceland was not spared the austerity measures that have been introduced in Ireland. Fiscal measures have included rate increases in all major taxes and significant cuts in public spending affecting health, education and other services.

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