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We believe in free trade, Iceland Prime Minister Frostadóttir tells Euronews

News RoomBy News RoomApril 15, 2025
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Kristrún Frostadóttir, Iceland’s Prime Minister, reaffirmed her government’s stance in a statement to Euronews, emphasizing Iceland’s commitment to free trade despite the ongoing trade tensions with the United States. Frostadóttir admitted not to impose counter-tariffs on the U.S. and stressed the importance of the Free Trade Area (FTA) as a cornerstone of economic cooperation. She highlighted Iceland’s long-standing and positive relationship with the European Economic Area (EEA), anticipating that a.OUT(suffix) will continue to benefit from this partnership’s stability and future.

In a public interview with Euronews, Frostadóttir expressed concern over the potential consequences of rising tariffs, cautioning against the escalation of sentiments that could harm Icelandic trade relations with the EU. She also supported the EU’s need to maintain strength and ensure retaliatory measures do not negatively impact neighboring countries, particularly Iceland.

Iceland’s historical relationship with the EU is a long-standing and positive partnership, marked by shared responsibilities within the European Economic Area (EEA). Frostadóttir has repeatedly stated the importance of the EU demonstrating “strength” and in its relationships with its main trading partners, ensuring the internal market remains unharmed.

As part of her domestic policies, Frostadóttir has focused on social democratic policies aimed at improving welfare, housing, and the economy. She acknowledges the growing importance of international relations, reflecting her hands-on approach to governance in her early career and intending to apply this transparency to predominant international issues as well.

Frostadóttir has proposed a referendum on joining the EU by 2027, despite the significant geopolitical shifts, highlighting the necessity of a “balanced” discussion and the importance of allowing Icelandic households to voice concerns regarding the EU’s accession.

Frostadóttir’s remarks underscore the importance of international cooperation and transparency, as well as the shared commitment to a tough global fight against the challenges posed by affiliated nations.

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