The Icelandic fishing industry is often cited as one that has successfully managed to replenish rapidly dwindling stocks of haddock and cod through the use of tradable fishing quotas. This is in stark contrast to the government failure embodied into the failed quota system of the EU common fisheries policy. But as this report in the Guardian suggests, the Icelandic fishing sector is also facing problems - namely high levels of debt and a fall in demand for salt cod from recession-hit Southern European countries.

“The industry’s debt is estimated to be 400-500bn kronur (£2-2.25bn). Fridrik Arngrímsson, managing director of the Federation of Icelandic Fishing Vessel Owners, says many companies have already been hit by weak demand from important markets such as northern Spain, where recession has suppressed the appetite for salt cod.”

Will Iceland want to join the CFP if it seeks membership of the EU? I doubt it.

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