Thursday, September 3, 2009

OECD, Iceland the Euro

Here's a question for all you OECD observers out there. I came across this report in the FT today about the OECD urging Iceland to adopt the euro, and it struck me that the OECD might be sticking its head pretty far above the parapet here.

It's one thing for a newspaper to endorse EU membership or Eurozone membership for a country in the editorial pages; quite another for an international organisation to make strong statements that will so obviously have such major political implications in that country.

Is it just me? Is this sort of thing quite common and nothing too remarkable or controversial?

1 comment:

Julien Frisch said...

I agree: It's kind of strange thing for one IO to recommend a member state the participation in a specific currency. But the report - I read the passage in the original document - clearly says that "if Iceland joins the EU" it would be advisable to join the Euro to stabilise its monetary policies.

I think that is a fair analysis, saying that if Iceland is already joining the EU, it's economic and financial situation would also benefit from using the Euro compared to keeping its own currency.

But it is still a strong statement. Yet, why not saying it if it is perceived as true?