Travel Reference
In-Depth Information
blings have again shone a spotlight onto Iceland's volatility - and served as a reminder of
its ability to potentially close airspace.
But events in Iceland have proven that there's no such thing as bad publicity: triggered
by the 2010 eruption, and all the free exposure it generated for Iceland, tourism has
boomed. The country has become the fastest-growing travel destination in Europe, with all
the benefits (economic growth, employment) and headaches (infrastructure issues, envir-
onmental impact) that entails.
Icelanders went to the polls in April 2013 with the national economy on the path to re-
covery, but with the population smarting from the government's tough austerity measures
(higher taxes, spending cuts). The results showed a backlash against the ruling Social
Democrats; the centre-right camp (comprising the Progressive Party and the Independence
Party) successfully campaigned on promises of debt relief and a cut in taxes, as well as op-
position to Iceland's application to join the EU.
The two parties formed a coalition government. In early 2014 the government halted all
negotiations with the EU - despite promising a referendum on whether or not to proceed
with membership negotiations. Although polls show a majority of Icelanders still oppose
joining the EU, making such a move without the promised referendum was deeply unpop-
ular.
