Faroe Islands. Political work was dominated during the
year by negotiations with Denmark on independence. When the
talks began in March, the national government (the
self-governing government) proposed that independence should
be followed by a 15-year settlement of Denmark's financial
contribution to the Faroe Islands. However, the Danish
government refused to discuss a longer settlement period
than four years. The tone of the conversations therefore
became harsh from the start. It was sharpened when Denmark
declared that the Faroe Islands do not have the right to
hold talks with the UN or NATO on their own. In October, the
government decided to suspend the negotiations.
The opposition in the Faroe Islands demanded that the
national government resign and announce new elections when
its line of independence had failed. Instead, the government
proposed a new policy. This means that the Faroe Islands
first become financially independent of Denmark and assume
responsibility for foreign and defense issues as well as the
judiciary before the kingdom becomes independent. A
referendum on this line was announced in the Faroe Islands
until April 2001.
After a strike for almost two months in the spring, the
elementary school teachers received a three-year agreement
that gave them a 9% increase in salary.
In August, licenses for sample drilling for oil were
distributed on the Faroese seabed. Twelve companies will
participate in the drilling, which is scheduled to start in
For the third year in a row, public finances went into
surplus of about half a billion Danish kroner. The National
Board therefore discussed a transitional fund, which will
cover the reduction of the Danish financial support.
The Faroe Islands trade and customs agreement with the EU
was extended in 2005 to the fishing industry as well.
Fishing companies in the islands can process foreign fish
and resell it within the EU without paying extra duty.
However, there was a crisis in relation to the EU when the
Faroe Islands in 2010 on their own greatly increased their
mackerel and herring quotas. In 2013, Faroese mackerel and
herring fish were excluded from all Norwegian and EU ports
and from exports to Norway and the EU. The situation was
uncomfortable for Denmark, which was allowed to participate
in EU sanctions against part of its own kingdom. The Faroese
then sold to African and Asian countries and not least
Russia. They did not participate in the boycotts of Russia
in the Western countries, and in turn were not affected by
Russia's halt to imports from the west. In 2014, the Faroe
Islands signed a five-year agreement with the EU and Norway
and the sanctions were lifted.
At the end of 2017, the fishing nations around the Arctic
agreed to halt all commercial fishing in the Arctic waters
for the time being. In line with global warming, fish stocks
have decreased in size and fishing hours have begun to take
new paths. During the stop, the nations will conduct joint
research to find out more about the ecosystems in the area
in order to eventually be able to resume fishing. The
agreement includes Canada, the EU, China, Denmark (Greenland
and the Faroe Islands), Iceland, Japan, Norway, South Korea,
Russia and the USA.