Icelandic capital restrictions and the EEA Agreement

19.2.2014

Question for written answer E-001903-14
to the Commission
Rule 117
Morten Løkkegaard (ALDE)

It has come to my attention that Iceland is still upholding its restrictions on capital. In light of this, I would like to ask the following questions.

In only ‘taking note’ of Iceland’s capital controls (introduced in 2008) without giving a response and therefore, de facto, approving the controls, is the Commission fulfilling its obligations in the Joint Committee of ensuring the effective operation of the EEA Agreement (Articles 43, 45 and 92 EEA)?

In view of the Commission’s obligations to safeguard the free movement of capital throughout the EEA (cf. Article 92 EEA), and in view of the requirement that capital restrictions remain in place only for the shortest period of time (Article 45), does the Commission intend to continue to approve of Iceland’s capital controls?

Is the Commission fulfilling its duty to ensure the effective operation of the EEA Agreement and its duty to safeguard and enforce the TFEU (Article 17 TEU), bearing in mind that EU businesses, having invested in Iceland, now find that their investments have effectively been barred for more than five years and that they are unable to invest such capital elsewhere and thereby exercise their rights under the TFEU (Article 63)?

Given that EEA states cannot adopt an à la carte approach to fundamental freedoms, does the Commission believe that Iceland’s restrictions satisfy the rules on the free movement of capital?

In light of the fact that Iceland has had capital controls in place for over five years, thereby limiting the free movement of capital between the EU and its fellow EFTA states, is the Commission considering renegotiating the EEA Agreement?

Please provide an answer which takes into account the fact that Switzerland has recently limited the free movement of people, thereby breaching its agreement with the EU.

OJ C 312, 12/09/2014