Iceland
Iceland is a Nordic countries, Nordic island country between the Atlantic Ocean, North Atlantic and Arctic Oceans, on the Mid-Atlantic Ridge between North America and Europe. It is culturally and politically linked with Europe and is the regi ...
is heavily integrated into the
European Union
The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are Geography of the European Union, located primarily in Europe. The u ...
via the Agreement on the
European Economic Area
The European Economic Area (EEA) was established via the ''Agreement on the European Economic Area'', an international agreement which enables the extension of the European Union's single market to member states of the European Free Trade Asso ...
and the
Schengen Agreement
The Schengen Agreement ( , ) is a treaty which led to the creation of Europe's Schengen Area, in which internal border checks have largely been abolished. It was signed on 14 June 1985, near the town of Schengen, Luxembourg, by five of the t ...
, despite its status as a non-
EU member state. Iceland applied for membership in 2009. The
Minister for Foreign Affairs sent a letter in 2015 that ended the application process.
Comparison
Integration

Iceland is a member of the
European Free Trade Association
The European Free Trade Association (EFTA) is a regional trade organization and free trade area consisting of four List of sovereign states and dependent territories in Europe, European states: Iceland, Liechtenstein, Norway and Switzerland. ...
(EFTA), a grouping of four non-EU European countries, and is also part of the
European Economic Area
The European Economic Area (EEA) was established via the ''Agreement on the European Economic Area'', an international agreement which enables the extension of the European Union's single market to member states of the European Free Trade Asso ...
(EEA). Through the EEA, Iceland participates with a non-voting status in certain EU agencies and programmes, including enterprise, environment, education (including the
Erasmus Programme) and research programs. Iceland also contributes funds to "social and economic cohesion" in the EU/EEA.
[Iceland](_blank)
EEAS Iceland also frequently consults the EU on foreign affairs and frequently aligns itself to
EU foreign policy. Iceland also participates in EU civilian
peacekeeping
Peacekeeping comprises activities, especially military ones, intended to create conditions that favor lasting peace. Research generally finds that peacekeeping reduces civilian and battlefield deaths, as well as reduces the risk of renewed w ...
missions.
[Iceland´s home is in Europe](_blank)
Icelandic Ministry of Foreign Affairs
Iceland is a member of the
Nordic Passport Union and the
Schengen Area
The Schengen Area ( , ) encompasses European countries that have officially abolished border controls at their common borders. As an element within the wider area of freedom, security and justice (AFSJ) policy of the European Union (EU), it ...
, which now is under EU law, as a non-voting participant. Iceland's participation in the Schengen Area allows free movement of people between Iceland and the rest of the Schengen Area. Several thousand Icelanders travel to and study or work in the EU. A large majority of foreigners in Iceland come from the EU.
Iceland is also associated with the
Dublin Convention on justice and home affairs cooperation. Iceland also has links to several EU member states through its membership of the
Nordic Council
The Nordic Council is the official body for formal inter-parliamentary Nordic cooperation among the Nordic countries. Formed in 1952, it has 87 representatives from Denmark, Finland, Iceland, Norway, and Sweden as well as from the autonomo ...
.
Use of the euro
During the
2008–2011 Icelandic financial crisis
The Icelandic financial crisis was a major financial crisis, economic and political event in Iceland between 2008 and 2010. It involved the default (finance), default of all three of the country's major privately owned commercial banks in late 2 ...
, instability in the
Icelandic króna
The króna () or krona (sometimes called Icelandic crown; currency sign, sign: kr; ISO 4217, code: ISK) is the currency of Iceland.
One króna was formerly divided into 100 eyrir (plural "aurar").
Name
Like the other Nordic countries, Nordic ...
led to discussion in
Iceland
Iceland is a Nordic countries, Nordic island country between the Atlantic Ocean, North Atlantic and Arctic Oceans, on the Mid-Atlantic Ridge between North America and Europe. It is culturally and politically linked with Europe and is the regi ...
about adopting the euro. However,
Jürgen Stark, a Member of the executive board of the
European Central Bank
The European Central Bank (ECB) is the central component of the Eurosystem and the European System of Central Banks (ESCB) as well as one of seven institutions of the European Union. It is one of the world's Big Four (banking)#International ...
, has stated that "Iceland would not be able to adopt the EU currency without first becoming a member of the EU".
As of the ECB's May 2012 convergence report, Iceland did not meet any of the convergence criteria. One year later, the country managed to comply with the deficit criteria and had begun to decrease its
debt-to-GDP ratio,
but still suffered from elevated
HICP inflation and long-term governmental interest rates.
Reasons for Iceland's non-membership of the European Union
Academics have proposed several explanations for why Iceland has not joined the European Union:
* The importance of the fishing industry to Iceland's economy and the perception that EU membership (and its
Common Fisheries Policy
The Common Fisheries Policy (CFP) is the fishery, fisheries policy of the European Union (EU). It sets quotas for which Member state of the European Union, member states are allowed to catch each type of fish, as well as encouraging the fishin ...
) will have an adverse effect on the fishing industry.
* The perception that EU membership will have an adverse effect on Iceland's agricultural sector.
* Iceland's strong ties with the United States, which included significant economic, diplomatic and military assistance, decreased Iceland's dependence on European countries.
* The victories in the
Cod Wars
The Cod Wars (; also known as , ; ) were a series of 20th-century confrontations between the United Kingdom (with aid from West Germany) and Iceland about Exclusive economic zone, fishing rights in the North Atlantic. Each of the disputes ended ...
(1958-1976) may have strengthened Icelandic nationalism and boosted the perception that Iceland can succeed through unilateral or bilateral means rather than compromise in multilateral frameworks.
* The
Icelandic electoral system favors rural areas, which are more eurosceptic.
* The tendency for Icelandic elites to pursue education in the United States or eurosceptic European countries (such as the United Kingdom or the Nordic countries), and to cooperate more closely with political elites from those countries.
*
Icelandic nationalism and the legacy of
Iceland's struggle for national sovereignty.
* The impact of the
Icesave dispute with the Netherlands and the UK.
Trade relations
Economic relations between Iceland and the European Union are primarily governed by two agreements: a bilateral
free trade agreement
A free trade agreement (FTA) or treaty is an agreement according to international law to form a free-trade area between the cooperating state (polity), states. There are two types of trade agreements: Bilateralism, bilateral and Multilateralism, m ...
signed in 1972, and the agreement on the
EEA in 1994. The EEA was established to give Iceland, among other European countries outside the EU, access to the
EU market. Iceland's access to the EU market in respect of agriculture and fisheries is dealt with by separate bilateral agreements. Iceland is legally bound to implement into its own law all
EU directives applicable to the
free movement of goods, persons, services and capital. This is complemented by regular meetings between EU and Icelandic officials, including a twice-yearly meeting of EEA foreign ministers.
[Iceland](_blank)
European Commission
78% of Iceland's exports went to the EU and 52% of Iceland's imports came from it, making the EU Iceland's most important trading partner, followed by Norway. Traditionally,
Iceland's economy has focused on
fisheries
Fishery can mean either the enterprise of raising or harvesting fish and other aquatic life or, more commonly, the site where such enterprise takes place ( a.k.a., fishing grounds). Commercial fisheries include wild fisheries and fish farm ...
and
renewable energy
Renewable energy (also called green energy) is energy made from renewable resource, renewable natural resources that are replenished on a human lifetime, human timescale. The most widely used renewable energy types are solar energy, wind pow ...
(primarily
hydroelectricity
Hydroelectricity, or hydroelectric power, is Electricity generation, electricity generated from hydropower (water power). Hydropower supplies 15% of the world's electricity, almost 4,210 TWh in 2023, which is more than all other Renewable energ ...
and
geothermal energy
Geothermal energy is thermal energy extracted from the crust (geology), crust. It combines energy from the formation of the planet and from radioactive decay. Geothermal energy has been exploited as a source of heat and/or electric power for m ...
- see
energy in Iceland for more details), but it has been diversifying into
aluminium
Aluminium (or aluminum in North American English) is a chemical element; it has chemical symbol, symbol Al and atomic number 13. It has a density lower than that of other common metals, about one-third that of steel. Aluminium has ...
production,
pharmaceuticals
Medication (also called medicament, medicine, pharmaceutical drug, medicinal product, medicinal drug or simply drug) is a drug used to diagnose, cure, treat, or prevent disease. Drug therapy ( pharmacotherapy) is an important part of the ...
,
information technologies
Information technology (IT) is a set of related fields within information and communications technology (ICT), that encompass computer systems, software, programming languages, data and information processing, and storage. Information technolo ...
,
tourism
Tourism is travel for pleasure, and the Commerce, commercial activity of providing and supporting such travel. World Tourism Organization, UN Tourism defines tourism more generally, in terms which go "beyond the common perception of tourism as ...
and the
financial sector
Financial services are economic services tied to finance provided by financial institutions. Financial services encompass a broad range of service sector activities, especially as concerns financial management and consumer finance.
The financ ...
. Iceland is still a large exporter of fish (the third largest exporter to the EU after Norway and China) with a world trade surplus of €1.1 billion in 2008. In fisheries, the EU had a 2009 trade deficit of €879 million. Until Iceland's 2009 financial crisis, its commercial services sector had been growing rapidly, accounting for almost 35% of total exports (goods and services combined).
Accession of Iceland to the European Union
Iceland applied to join the
European Union
The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are Geography of the European Union, located primarily in Europe. The u ...
on 16 July 2009 and formal negotiations began on 27 July 2010.
[Timeline of events – Iceland's application for membership of the EU](_blank)
Icelandic Ministry for Foreign Affairs However, on 13 September 2013 the
Government of Iceland
The politics of Iceland take place in the framework of a parliamentary system, parliamentary representative democracy, representative democratic republic, whereby the President of Iceland, president is the head of state, while the prime ministe ...
dissolved its accession team and suspended its application to join the EU. On 12 March 2015, Foreign Minister of Iceland
Gunnar Bragi Sveinsson stated that he had sent a letter to the EU withdrawing the application for membership, without the approval of the
Althing
The (; ), anglicised as Althingi or Althing, is the Parliamentary sovereignty, supreme Parliament, national parliament of Iceland. It is the oldest surviving parliament in the world. The Althing was founded in 930 at ('Thing (assembly), thing ...
, though the European Union stated that Iceland had not formally withdrawn the application.
RÚV
Ríkisútvarpið (, ; abbr. RÚV ) is Iceland's national public broadcasting, public-service broadcasting organization.
Founded in 1930, it operates from studios in the country's capital, Reykjavík, as well as regional centres around the count ...
Application not formally withdrawn
If negotiations were to resume, Iceland would face controversial issues on fisheries which could potentially derail an agreement, despite already being a member of the
European Economic Area
The European Economic Area (EEA) was established via the ''Agreement on the European Economic Area'', an international agreement which enables the extension of the European Union's single market to member states of the European Free Trade Asso ...
(which excludes fishery). If an agreement were to be concluded, the accession treaty would be subject to a national referendum in Iceland and require ratification by every EU state.
[National Referendum – Iceland's application for membership of the EU](_blank)
Icelandic Ministry for Foreign Affairs
Pre-2008 opinion
From
1995
1995 was designated as:
* United Nations Year for Tolerance
* World Year of Peoples' Commemoration of the Victims of the Second World War
This was the first year that the Internet was entirely privatized, with the United States government ...
to
2007
2007 was designated as the International Heliophysical Year and the International Polar Year.
Events
January
* January 1
**Bulgaria and Romania 2007 enlargement of the European Union, join the European Union, while Slovenia joins the Eur ...
the government coalition of the
conservative
Conservatism is a cultural, social, and political philosophy and ideology that seeks to promote and preserve traditional institutions, customs, and values. The central tenets of conservatism may vary in relation to the culture and civiliza ...
Independence Party (''Sjálfstæðisflokkurinn'') and the
conservative
Conservatism is a cultural, social, and political philosophy and ideology that seeks to promote and preserve traditional institutions, customs, and values. The central tenets of conservatism may vary in relation to the culture and civiliza ...
Progressive Party (''Framsóknarflokkurinn''), opposed joining the EU, while the opposition
Social Democratic Alliance
The Social Democratic Alliance (, ) is a Social democracy, social democratic List of political parties in Iceland, political party in Iceland. The party is positioned on the Centre-left politics, centre-left of the political spectrum and their ...
(''Samfylkingin'') supported membership negotiations. In 1994, the Social Democratic Party (''Alþýðuflokkurinn'') became the first Icelandic political party to include the intention to apply to join the EU in its policy statement. Despite this hostility towards EU membership, the Independence Party was forced to accept some of the constraints associated with participation in the European project. Iceland sought shelter provided by the EEA, EFTA and Schengen because non-membership of the EEA and EFTA would have threatened its key economic interests, and non-membership of Schengen would have imposed burdens on Icelandic individuals.
Former
Prime Minister
A prime minister or chief of cabinet is the head of the cabinet and the leader of the ministers in the executive branch of government, often in a parliamentary or semi-presidential system. A prime minister is not the head of state, but r ...
Halldór Ásgrímsson
Halldór Ásgrímsson (pronounced ; 8 September 1947 – 18 May 2015) was an Icelandic politician, who served as prime minister of Iceland from 15 September 2004 to 15 June 2006 and was the leader of the Progressive Party from 1994 to 2006.
Ed ...
predicted on 8 February 2006 that the country would join the EU by 2015. He added that the decisive factor would be the future and the size of the
Eurozone
The euro area, commonly called the eurozone (EZ), is a Monetary union, currency union of 20 Member state of the European Union, member states of the European Union (EU) that have adopted the euro (Euro sign, €) as their primary currency ...
, especially whether Denmark, Sweden and the UK would have adopted the
euro
The euro (currency symbol, symbol: euro sign, €; ISO 4217, currency code: EUR) is the official currency of 20 of the Member state of the European Union, member states of the European Union. This group of states is officially known as the ...
or not. His prediction received some criticism, not the least from people within his own government.
Another former Prime Minister,
Geir H. Haarde, has on a number of occasions stated his opposition to EU membership, both as Foreign Minister under Halldór Ásgrímsson and after taking office as Prime Minister. In response to Halldór Ásgrímsson's earlier prediction, Haarde said, "I don't share that point of view. Our policy is not to join in the foreseeable future. We are not even exploring membership." In a speech at a conference at the
University of Iceland
The University of Iceland ( ) is a public research university in Reykjavík, Iceland, and the country's oldest and largest institution of higher education. Founded in 1911, it has grown steadily from a small civil servants' school to a modern co ...
on 31 March 2006, Geir Haarde repeated what he had said on a number of occasions—that no special Icelandic interests demanded membership of the EU. In the same speech he further explained in detail why it would not be in the interest of Iceland to adopt the euro.
Following the
2007 election, the Independence Party and the Social Democratic Alliance formed a new coalition with a policy of not applying for membership, but setting up a special committee to monitor the development within the EU and suggest ways to respond to that.
Due to Iceland's limited currency, the government has explored the possibility of adopting the euro without joining the European Union. The EU, however, says that Iceland cannot join the
Economic and Monetary Union (EMU) without becoming a full EU member state (all other non-EU states that use the euro do so because they previously used a member state currency that was replaced by the euro).
Effect of 2008 financial crisis
At a meeting of members of his party on 17 May 2008, Geir Haarde said that in his opinion the cost of joining the EU outweighed the benefits, and therefore he was not in favour of membership. However, in October 2008, during talks to repatriate a portion of Iceland's foreign invested pension funds—Iceland having been particularly affected by the
2008 financial crisis
The 2008 financial crisis, also known as the global financial crisis (GFC), was a major worldwide financial crisis centered in the United States. The causes of the 2008 crisis included excessive speculation on housing values by both homeowners ...
—the unions demanded that Iceland apply for EU membership in return for
wage restraint.
On 30 October 2008,
Þorgerður Katrín Gunnarsdóttir, minister of education, said that "Iceland has to define its long-term national interests and part of that is a revision of the currency regime, including a possible EU application" and that an application for membership needed to be discussed "in weeks rather than months".
Two weeks later, on 17 November 2008, the Independence Party announced it would hold its party congress in January 2009 instead of Autumn 2009, to reconsider the possibility of applying for EU membership; the Progressive Party also announced it would hold its party congress in January, after two anti-EU MPs (including the party leader) resigned and were replaced by MPs more positive towards EU application.
The Progressive Party accepted at its congress to support application for EU membership but with very strict conditions including one demanding full authority for Iceland over its fishing grounds and other national resources. When the government headed by the Independence Party was dissolved in January the party decided to postpone its congress until March. The congress eventually decided on an unchanged opposition to EU membership but also claimed that if the issue were opened by others both an application and an initial accession treaty with the EU should be put to a referendum.
The US denied Iceland's financial request for financial support after the 2008 economic crash. Iceland turned to the EU for assistance, but they also turned Iceland's request for aid down. This seriously damaged the efforts of the Europhiles in Iceland to sell the EU as a shelter provider to Iceland. The Europhiles mainly focused on the potential economic benefits of EU membership and the adoption of the euro, emphasizing the benefits of cheaper goods for consumers and enterprises, and access to aid from the EU structural funds for rural areas, agriculture and the tourism industry. There was, however, no mention of the EU as a soft security shelter provider. After a speedy economic recovery and considerable domestic opposition to membership, the application was put on hold in 2013. At present, the Icelandic government does not regard the country as a candidate to join the EU, though it has not withdrawn its membership application. Iceland's membership of the European Economic Area (EEA) and Schengen provide Iceland with partial political, economic and societal shelter but it is secondary to formal membership of the EU. Iceland's membership of the EU is unlikely to materialize in the present domestic and European environment. A dramatic change is needed to alter Iceland's present European policy. Domestic features of each and every state need to be taken into consideration in order to fully understand its calculations of cost and benefits of a potential shelter relationship.
2009 election and parliamentary debate
Iceland's finance minister,
Steingrímur J. Sigfússon, ahead of the country's first elections since the
financial crisis
A financial crisis is any of a broad variety of situations in which some financial assets suddenly lose a large part of their nominal value. In the 19th and early 20th centuries, many financial crises were associated with Bank run#Systemic banki ...
, stated that "any decision for Iceland to join the
European Union
The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are Geography of the European Union, located primarily in Europe. The u ...
and the single currency must be taken by its people, not one political party", on the subject that the issue of EU membership was the greatest threat to a stable coalition.
The
2009 election, which followed the financial crisis, saw the Progressive Party switch to supporting EU membership but the Independence Party called for a referendum prior to the start of negotiations. The Social Democratic Alliance made joining the EU a key issue in their campaign.
[Icelandic parties clarify EU positions ahead of snap polls](_blank)
''EUBusiness'', 31 March 2009
After the win of the pro-EU Social Democratic Alliance in the election, Prime Minister
Jóhanna Sigurðardóttir spoke of an immediate application to the European Union and
adoption of the euro within four years as a way to deal with the country's debt.
In late April 2009, it was announced that the
United Kingdom
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Northwestern Europe, off the coast of European mainland, the continental mainland. It comprises England, Scotlan ...
, which at the time was a member state of the European Union with whom Iceland has had a long history of
fishing and territorial water disputes, supported Iceland joining the EU.
In early May 2009, it was leaked that the issue of application for EU membership would likely be left to the parliament, in which the Alliance, the Progressive Party and the Citizens' Movement together already had enough seats to approve the application.
Sigmundur Davíð Gunnlaugsson, the leader of the Progressive Party, strongly objected to the suggestion that his party would assist the government in this matter, however. The anti-EU Left-Green coalition partner accepted that in spring 2010, the minister for foreign affairs would present to the parliament a bill on talks with the EU.
On 10 May 2009, Prime Minister Jóhanna Sigurðardóttir announced that the government intended to move towards membership more quickly than previously expected. She announced that a bill would be introduced in parliament on 15 May 2009, authorising the opening of accession talks with the EU. She also stated that she was confident that the legislation would pass, and that she had secured a parliamentary majority on the issue, despite the official opposition to talks by one of her coalition partners. She went on to say that she expected an official application to be submitted no later than July 2009. This seemed to leave Iceland on course to join the EU along with Croatia in 2011, as predicted by EU Enlargement Commissioner,
Olli Rehn. The government has stated that the issue will be put to a vote once an accession agreement has been negotiated.
The motion to file an application for membership was officially introduced in parliament on 25 May 2009. Voting was to have been held on 13 July, but was postponed until 16 July. First, a proposal by the Independence Party to hold a referendum on the membership application was defeated by 32 to 30 with one abstention. Then the Social Democratic Alliance's proposal to apply for membership immediately was approved with a narrow majority of 33 to 28 votes with 2 abstentions.
Application for membership

To become a member, a country must first apply and then be recognised as a candidate country. For that to happen the country must satisfy the first of the
Copenhagen criteria: it must be a politically stable democracy that respects human rights. Then negotiations will take place which will consider the country's fulfilment of economic criteria, the country's degree of adoption of EU legislation, and whether there shall be any exceptions.
EU Enlargement Commissioner
Olli Rehn claimed that negotiations on an accession treaty would take less than a year, because Iceland had already adopted two-thirds of EU legislation in relation to the
EEA. He had on other occasions claimed that the negotiations could take up to four years.
On 30 January 2009, Rehn commented that Iceland could enter the European Union promptly in 2011, at the same time as
Croatia
Croatia, officially the Republic of Croatia, is a country in Central Europe, Central and Southeast Europe, on the coast of the Adriatic Sea. It borders Slovenia to the northwest, Hungary to the northeast, Serbia to the east, Bosnia and Herze ...
, saying that Iceland is an old democracy but also that it should not get special treatment. Fishing quotas and
Icelandic whaling may be the toughest issues in any such negotiations.
On 16 July 2009, the Althing voted in favour of accession talks with the EU (with 33 votes in favour, 28 against, and 2 abstentions). The head of the parliamentary committee on EU affairs, Árni Þór Sigurðsson, stated that Iceland would not be ready to join the EU any earlier than 2013. However the government stated that it planned to complete negotiations by the end of 2010.
On 17 July 2009, the application for Icelandic membership of the EU was handed to the government of
Sweden
Sweden, formally the Kingdom of Sweden, is a Nordic countries, Nordic country located on the Scandinavian Peninsula in Northern Europe. It borders Norway to the west and north, and Finland to the east. At , Sweden is the largest Nordic count ...
, which then held the presidency of the
Council of the European Union
The Council of the European Union, often referred to in the treaties and other official documents simply as the Council, and less formally known as the Council of Ministers, is the third of the seven institutions of the European Union (EU) a ...
, by the ambassador of Iceland in
Stockholm
Stockholm (; ) is the Capital city, capital and List of urban areas in Sweden by population, most populous city of Sweden, as well as the List of urban areas in the Nordic countries, largest urban area in the Nordic countries. Approximately ...
. The application was again handed over by the Icelandic foreign minister to the Swedish one in a ceremony in Stockholm on 23 July 2009.
The letter of application was dated 16 July 2009. The application was acknowledged by the Council of the European Union on 27 July 2009.
Accession negotiations
Sweden
Sweden, formally the Kingdom of Sweden, is a Nordic countries, Nordic country located on the Scandinavian Peninsula in Northern Europe. It borders Norway to the west and north, and Finland to the east. At , Sweden is the largest Nordic count ...
, then holder of the
EU presidency, announced that it would prioritise Iceland's EU accession process. On 24 July, the Lithuanian Parliament unanimously approved and gave full support for Iceland's membership application to join the European Union. Later, on 27 July,
Malta
Malta, officially the Republic of Malta, is an island country in Southern Europe located in the Mediterranean Sea, between Sicily and North Africa. It consists of an archipelago south of Italy, east of Tunisia, and north of Libya. The two ...
also announced that it supports Iceland's EU bid.
In September 2009, the
Spanish foreign minister visited Iceland to discuss the progress of the Icelandic application; Spain chaired the EU from January–June 2010. On 8 September, the EU commission sent a list of 2,500 questions to Iceland about its fulfilment of political and economic criteria and adoption of EU law. Iceland returned answers to them on 22 October 2009. On 2 November, Iceland selected a chief negotiator for the membership negotiations with the EU:
Stefán Haukur Jóhannesson, Iceland's Ambassador to
Belgium
Belgium, officially the Kingdom of Belgium, is a country in Northwestern Europe. Situated in a coastal lowland region known as the Low Countries, it is bordered by the Netherlands to the north, Germany to the east, Luxembourg to the southeas ...
.
In January 2010 the
Icesave dispute became an issue. The
United Kingdom
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Northwestern Europe, off the coast of European mainland, the continental mainland. It comprises England, Scotlan ...
and the
Netherlands
, Terminology of the Low Countries, informally Holland, is a country in Northwestern Europe, with Caribbean Netherlands, overseas territories in the Caribbean. It is the largest of the four constituent countries of the Kingdom of the Nether ...
wanted the Icelandic government to repay them the costs incurred in covering their citizens' losses due to the bankruptcy of some Icelandic banks. If Iceland did not pay, obstacles to membership could be laid by the UK and the Netherlands. If Iceland agreed to repay the UK and the Netherlands, the added debt would make it difficult to adopt the euro, a major reason for Iceland to join the EU, because of the
convergence criteria
The euro convergence criteria (also known as the Maastricht criteria) are the criteria European Union member states are required to meet to enter the third stage of the Economic and Monetary Union of the European Union, Economic and Monetary Un ...
. Spanish Foreign Minister
Miguel Ángel Moratinos, who then held the Presidency of the European Union, has said that the Icesave dispute does not impact Iceland's application.
David Miliband
David Wright Miliband (born 15 July 1965) is the president and chief executive officer (CEO) of the International Rescue Committee and a former British Labour Party politician. He was the Foreign Secretary from 2007 to 2010 and the Member o ...
, then British Foreign Minister, reaffirmed the UK's continued support for Iceland's EU application.
Additionally, the Dutch Foreign Minister
Maxime Verhagen has stated that while the opening of negotiations will not be blocked by the Icesave dispute, it must be resolved before Iceland's accession.
In February 2010, the European Commissioner for Enlargement and European Neighbourhood Policy recommended to the Council of the European Union to start accession negotiations with Iceland. While it was expected that Iceland would be considered for official candidate status at the EU summit in March, this was delayed to allow the German national parliament, which has the authority to debate important EU policy such as enlargement before action is taken by the government, to consider the matter. The German Parliament voted in favour of opening membership negotiations on 22 April 2010. The
European Council
The European Council (informally EUCO) is a collegiate body (directorial system) and a symbolic collective head of state, that defines the overall political direction and general priorities of the European Union (EU). It is composed of the he ...
decided in June to begin negotiations, and on 17 June 2010, the EU granted official candidate status to Iceland by formally approving the opening of membership talks.
[U summit approves membership talks for Iceland](_blank)
World News; 17 June 2010.
Negotiations for membership of the EU started on 27 July 2010, with screening of specific
acquis chapters beginning on 15 November 2010. Iceland became eligible for pre-accession funding from the EU through the
Instrument for Pre-Accession Assistance (IPA) since July 2010.
The first annual report on negotiations was published in November 2010: the main issues at stake remained the
fisheries
Fishery can mean either the enterprise of raising or harvesting fish and other aquatic life or, more commonly, the site where such enterprise takes place ( a.k.a., fishing grounds). Commercial fisheries include wild fisheries and fish farm ...
sector and
whale hunting
Whaling is the hunting of whales for their products such as meat and blubber, which can be turned into a type of oil that was important in the Industrial Revolution. Whaling was practiced as an organized industry as early as 875 AD. By the 16t ...
, while progress has been made concerning the
Icesave dispute.
The screening process ended and formal negotiations began on 27 June 2011. Four chapters were opened: science and research; education and culture; public procurement; information society and media. The first two were immediately closed, a first in accession history. Iceland aimed to open half of the remaining chapters under the Polish presidency (the second half of 2011) and the other half under the following Danish presidency (first half of 2012). Despite disputes over Icesave and fishing, and the fact there was then no majority in favour of membership in Iceland, Icelandic Foreign Minister
Össur Skarphéðinsson was confident Iceland would join and looked to the EU's flexibility in negotiations with Norway during the 1990s as hope. He did however claim that ultimately it was the major fishing countries of the EU who would influence the outcome of the application.
In February 2013, the Icelandic chief negotiator stated that the main driving force for Iceland joining the EU was the benefit to the country of adopting the euro to replace the inflation-plagued
Icelandic króna
The króna () or krona (sometimes called Icelandic crown; currency sign, sign: kr; ISO 4217, code: ISK) is the currency of Iceland.
One króna was formerly divided into 100 eyrir (plural "aurar").
Name
Like the other Nordic countries, Nordic ...
. Iceland's
HICP inflation and related long-term government interest rates were both recorded to be around 6 per cent on average for 2012. Most importantly, however, while the country retained the Icelandic kronur, it was unable to lift the
capital controls recently introduced in the turmoil of the economic crisis. Introduction of the euro, a far stronger currency, would allow the country to lift these capital controls and achieve an increased inward flow of foreign economic capital, which ultimately would ensure higher and more stable economic growth. To be eligible to adopt the euro, Iceland would need to join the EU, as unilateral euro adoption had previously been refused by the EU.
2013 election and withdrawal of application
The Icelandic Parliamentary committee on foreign affairs tabled a proposal on 18 December 2012 to suspend accession negotiations. The motion also called for an "application referendum" to be held to determine the will of the Icelandic people prior to any resumption of negotiations. A similar proposal was submitted to the Icelandic parliament in May 2012, but was rejected by a vote of 25 for and 34 against.
The
Icelandic parliament had yet to vote on the new proposal, which were supported primarily at the time by the opposition
Independence Party and
Progressive Party. The leaders of both governing parties, the
Social Democratic Alliance
The Social Democratic Alliance (, ) is a Social democracy, social democratic List of political parties in Iceland, political party in Iceland. The party is positioned on the Centre-left politics, centre-left of the political spectrum and their ...
and
Left-Green Movement, stated that they did not support the motion. However, some MPs from the Left-Green Movement declared their support for the measure. On 10 January 2013, the proposal was formally adopted by the Foreign Affairs committee.
On 14 January, the Icelandic government announced that negotiations would be slowed, and that an accession agreement would not be reached before the
parliamentary election in April. No new chapters would be opened prior to the election, though negotiations would continue on chapters that had already been opened. In February 2013, the national congress of both the Independence Party and Progressive Party reconfirmed their policy that further membership negotiations with the EU should be stopped and not resumed unless they are first approved by a national referendum, while the national congresses of the Social Democratic Alliance, Bright Future and Left-Green Movement reiterated their support for the completion of EU accession negotiations.
On 19 March 2013,
Þorgerður Katrín Gunnarsdóttir, an Independence Party MP, put forward a motion in the
Althing
The (; ), anglicised as Althingi or Althing, is the Parliamentary sovereignty, supreme Parliament, national parliament of Iceland. It is the oldest surviving parliament in the world. The Althing was founded in 930 at ('Thing (assembly), thing ...
calling for a referendum asking the Icelandic public whether EU accession negotiations should continue. She proposed that the referendum be held during the upcoming parliamentary election in April if possible, or else during local elections in the spring of 2014. In response to Gunnarsdóttir and other proponents of EU integration within the Independence Party,
Bjarni Benediktsson, the leader of the party, reiterated the party's policy of stopping negotiations with the EU, but promised to hold a referendum on continuing the negotiations in the first half of their term if they form government.
The ruling left-wing parties suffered a major defeat in the parliamentary elections that were held on 27 April 2013, while the centrist Progressive Party had a large victory. The leaders of the Progressive Party and the Independence Party began negotiating the formation of a coalition government, and on 22 May it was announced that a coalition platform had been agreed to that would suspend all accession talks with the EU and not resume them unless approved by a
referendum
A referendum, plebiscite, or ballot measure is a Direct democracy, direct vote by the Constituency, electorate (rather than their Representative democracy, representatives) on a proposal, law, or political issue. A referendum may be either bin ...
.
However, under Icelandic law, it is not the Government but the Icelandic Parliament which decides to end negotiations.
On 13 June, Iceland's Foreign Minister
Gunnar Bragi Sveinsson informed the European Commission that the newly elected government intended to "put negotiations on hold".
European Commission President Manuel Barroso responded on 16 July 2013 by requesting that the new Icelandic Prime Minister make a decision on the continuation of their accession bid "without further delay", and stressed that the EU remained "committed to continue the accession negotiations process, which I'm certain could address Iceland's specificities".
In August 2013 the Icelandic government revealed that it had received a legal opinion that the 2009 Parliamentary vote did not oblige it to continue accession negotiations with the EU. In light of this, the Foreign Ministry stated that it had "decided to consider dissolving the negotiation committee". A few weeks later the committee was officially dissolved. Foreign Minister Gunnar Bragi Sveinsson said that "the process has been suspended. But nothing has been closed down." In October 2013 Benediktsson stated that no decision on ending Iceland's membership bid would be made until a report being prepared by the government on negotiations and "the recent changes within the union" was completed, expected to be by the end of 2013. Benediktsson went on to say that "we will see if a proposal will be put before the parliament or not." On 12 March 2015, Foreign Minister of Iceland Gunnar Bragi Sveinsson stated that he had sent a letter to the EU withdrawing the application for membership, without the approval of the
Althing
The (; ), anglicised as Althingi or Althing, is the Parliamentary sovereignty, supreme Parliament, national parliament of Iceland. It is the oldest surviving parliament in the world. The Althing was founded in 930 at ('Thing (assembly), thing ...
, though the European Union stated that Iceland had not formally withdrawn the application.
In 2017, Iceland's
newly elected government announced that it would hold a vote in parliament on whether to hold a referendum on resuming EU membership negotiations.
However, in November 2017 that government was replaced by a coalition of the Independence Party, the Left Green Movement and the Progressive Party; all of whom oppose membership. Only 11 out of 63 MPs are in favour of EU membership.
There was a renewed call in 2022 for a referendum on resuming EU membership negotiations.
Following the
2024 Icelandic parliamentary election, the
Social Democratic Alliance
The Social Democratic Alliance (, ) is a Social democracy, social democratic List of political parties in Iceland, political party in Iceland. The party is positioned on the Centre-left politics, centre-left of the political spectrum and their ...
,
Viðreisn, and
People's Party formed a new coalition government, which agreed to hold a referendum on resuming negotiations on EU membership by 2027.
Timeline
EU affiliation ahead of membership application
*1970-01-01: Iceland joins
EFTA.
*1992-05-02: Iceland signs
EU Association Agreement (entering the
EEA).
*1994-01-01: EU Association Agreement entry into force.
*2001-03-25: Iceland joins the
Schengen Area
The Schengen Area ( , ) encompasses European countries that have officially abolished border controls at their common borders. As an element within the wider area of freedom, security and justice (AFSJ) policy of the European Union (EU), it ...
.
EU membership application and the preparational phase
*2009-07-17: Iceland submits EU membership application.
*2009-09-08: European Commission presents legislative questionnaire to Iceland.
*2009-10-22: Iceland responds to questionnaire.
*2010-02-24: European Commission recommended that the Council open accession negotiations with Iceland.
*2010-06-17: Iceland officially recognised as an accession candidate by the European Council.
*2010-07-26: The Council approved the framework for accession negotiations with Iceland.
*2010-07-27: Preparational phase of the membership negotiation process starts (Accession Conference nr.1).
*2010-11-15: Screening process started.
*2011-06-21: Screening process ended.
EU membership negotiations
*2011-06-27: Accession Conference nr.2.
Real negotiations started with the first four chapters being opened, of which two were completed and closed on the same day.
*2011-10-19: Accession Conference nr.3.
Two chapters were opened and closed immediately. In total 6 out of 33 chapters have now been opened (of which 4 have been closed).
*2011-12-12: Accession Conference nr.4.
Five chapters were opened, four were closed immediately. In total 11 out of 33 chapters have now been opened (of which 8 have been closed).
*2012-03-30: Accession Conference nr.5.
Four chapters were opened and two chapters were closed. In total 15 out of 33 chapters have now been opened (of which 10 have been closed).
*2012-05-24: Proposal for a national referendum on discontinuing accession talks with the European Union rejected with 34 votes against and 25 in favour.
*2012-06-22: Accession Conference nr.6.
Three new chapters opened. In total 18 out of 33 chapters have now been opened (of which 10 have been closed).
*2012-10-24: Accession Conference nr.7.
Three new chapters opened. In total 21 out of 33 chapters have now been opened (of which 10 have been closed).
*2012-12-18: Accession Conference nr.8.
Six new chapters opened and one more chapter closed. In total 27 out of 33 chapters have now been opened (of which 11 have been closed).
Negotiation progress
A document explaining the general process and each chapter*Situation of policy area at the start of membership negotiations is according to th
2010 EC OpinionTimetable for screening meetings 2010–2011The screening is a series of meetings between the commission and the applicant country examining the level of fulfilment of the EU acquis. It allows candidate countries to familiarise themselves with the acquis and it allows the commission and the member States to evaluate the degree of preparedness of candidate countries prior to negotiations.
Political parties' stances
Public opinion
A poll released in January 2014 found that 67.5% of Icelanders support holding a referendum on the continuation of accession negotiations. On 22 February, the governing parties agreed to formally withdraw the membership application, without first holding a referendum on the matter, and submitted a bill to parliament seeking their approval to do so. The decision led to thousands of protesters taking to the streets outside of the Parliament buildings in Reykjavík.
[ By 28 February 82% were in favour of holding the referendum. More than 40,000 people (16.5% of Iceland's voters) have signed a petition demanding that the promised referendum be held.] On 25 February, Ragnheiður Ríkharðsdóttir
Ragnheiður Ríkharðsdóttir (born 23 June 1949) is an Icelandic politician
A politician is a person who participates in Public policy, policy-making processes, usually holding an elective position in government. Politicians represent the p ...
, chairman of the parliamentary group of the Independence Party, announced her intention not to vote in favour of the proposal. In early March, the EU ambassador to Iceland said that the country could keep its application suspended rather than having to decide between resuming negotiations or formally withdrawing the application, "but of course not for an unlimited period of time". The bill was not approved before parliament's summer recess.
Various polls have been taken on the public opinion of starting accession negotiations, joining the EU or adopting the euro
The euro (currency symbol, symbol: euro sign, €; ISO 4217, currency code: EUR) is the official currency of 20 of the Member state of the European Union, member states of the European Union. This group of states is officially known as the ...
.
Comparison with EU countries
If Iceland were admitted to the EU, it would be the smallest member state in terms of population. Its area (103,000 km2) is somewhat close to the average for EU countries (165,048 km2), but it would be the least densely populated country in the EU. The table below shows its population and population density in comparison to some of the other member states.
Iceland's GDP per capita is among the highest in Europe as is shown in the following tables:
The Icelandic language
Icelandic ( ; , ) is a North Germanic languages, North Germanic language from the Indo-European languages, Indo-European language family spoken by about 314,000 people, the vast majority of whom live in Iceland, where it is the national languag ...
would be one of the official languages of the EU with the least speakers in terms of native speakers (together with Irish and Maltese).
Iceland's foreign relations with EU member states
* Austria
Austria, formally the Republic of Austria, is a landlocked country in Central Europe, lying in the Eastern Alps. It is a federation of nine Federal states of Austria, states, of which the capital Vienna is the List of largest cities in Aust ...
* Belgium
Belgium, officially the Kingdom of Belgium, is a country in Northwestern Europe. Situated in a coastal lowland region known as the Low Countries, it is bordered by the Netherlands to the north, Germany to the east, Luxembourg to the southeas ...
* Bulgaria
Bulgaria, officially the Republic of Bulgaria, is a country in Southeast Europe. It is situated on the eastern portion of the Balkans directly south of the Danube river and west of the Black Sea. Bulgaria is bordered by Greece and Turkey t ...
* Croatia
Croatia, officially the Republic of Croatia, is a country in Central Europe, Central and Southeast Europe, on the coast of the Adriatic Sea. It borders Slovenia to the northwest, Hungary to the northeast, Serbia to the east, Bosnia and Herze ...
* Cyprus
Cyprus (), officially the Republic of Cyprus, is an island country in the eastern Mediterranean Sea. Situated in West Asia, its cultural identity and geopolitical orientation are overwhelmingly Southeast European. Cyprus is the List of isl ...
* Czech Republic
The Czech Republic, also known as Czechia, and historically known as Bohemia, is a landlocked country in Central Europe. The country is bordered by Austria to the south, Germany to the west, Poland to the northeast, and Slovakia to the south ...
* Denmark
Denmark is a Nordic countries, Nordic country in Northern Europe. It is the metropole and most populous constituent of the Kingdom of Denmark,, . also known as the Danish Realm, a constitutionally unitary state that includes the Autonomous a ...
* Estonia
Estonia, officially the Republic of Estonia, is a country in Northern Europe. It is bordered to the north by the Gulf of Finland across from Finland, to the west by the Baltic Sea across from Sweden, to the south by Latvia, and to the east by Ru ...
* Finland
Finland, officially the Republic of Finland, is a Nordic country in Northern Europe. It borders Sweden to the northwest, Norway to the north, and Russia to the east, with the Gulf of Bothnia to the west and the Gulf of Finland to the south, ...
* France
France, officially the French Republic, is a country located primarily in Western Europe. Overseas France, Its overseas regions and territories include French Guiana in South America, Saint Pierre and Miquelon in the Atlantic Ocean#North Atlan ...
* Germany
Germany, officially the Federal Republic of Germany, is a country in Central Europe. It lies between the Baltic Sea and the North Sea to the north and the Alps to the south. Its sixteen States of Germany, constituent states have a total popu ...
* Greece
Greece, officially the Hellenic Republic, is a country in Southeast Europe. Located on the southern tip of the Balkan peninsula, it shares land borders with Albania to the northwest, North Macedonia and Bulgaria to the north, and Turkey to th ...
* Hungary
Hungary is a landlocked country in Central Europe. Spanning much of the Pannonian Basin, Carpathian Basin, it is bordered by Slovakia to the north, Ukraine to the northeast, Romania to the east and southeast, Serbia to the south, Croatia and ...
* Ireland
Ireland (, ; ; Ulster Scots dialect, Ulster-Scots: ) is an island in the North Atlantic Ocean, in Northwestern Europe. Geopolitically, the island is divided between the Republic of Ireland (officially Names of the Irish state, named Irelan ...
* Italy
Italy, officially the Italian Republic, is a country in Southern Europe, Southern and Western Europe, Western Europe. It consists of Italian Peninsula, a peninsula that extends into the Mediterranean Sea, with the Alps on its northern land b ...
* Latvia
Latvia, officially the Republic of Latvia, is a country in the Baltic region of Northern Europe. It is one of the three Baltic states, along with Estonia to the north and Lithuania to the south. It borders Russia to the east and Belarus to t ...
* Lithuania
Lithuania, officially the Republic of Lithuania, is a country in the Baltic region of Europe. It is one of three Baltic states and lies on the eastern shore of the Baltic Sea, bordered by Latvia to the north, Belarus to the east and south, P ...
* Netherlands
, Terminology of the Low Countries, informally Holland, is a country in Northwestern Europe, with Caribbean Netherlands, overseas territories in the Caribbean. It is the largest of the four constituent countries of the Kingdom of the Nether ...
* Poland
Poland, officially the Republic of Poland, is a country in Central Europe. It extends from the Baltic Sea in the north to the Sudetes and Carpathian Mountains in the south, bordered by Lithuania and Russia to the northeast, Belarus and Ukrai ...
* Romania
Romania is a country located at the crossroads of Central Europe, Central, Eastern Europe, Eastern and Southeast Europe. It borders Ukraine to the north and east, Hungary to the west, Serbia to the southwest, Bulgaria to the south, Moldova to ...
* Spain
Spain, or the Kingdom of Spain, is a country in Southern Europe, Southern and Western Europe with territories in North Africa. Featuring the Punta de Tarifa, southernmost point of continental Europe, it is the largest country in Southern Eur ...
* Sweden
Sweden, formally the Kingdom of Sweden, is a Nordic countries, Nordic country located on the Scandinavian Peninsula in Northern Europe. It borders Norway to the west and north, and Finland to the east. At , Sweden is the largest Nordic count ...
Diplomatic relations between Iceland and EU member states
See also
* Foreign relations of the European Union
Although there has been a large degree of integration between European Union member states, foreign relations is still a largely intergovernmental matter, with the 27 states controlling their own relations to a large degree. However, with ...
* Foreign relations of Iceland
* Icelandic European Union membership referendum
* Greenland–European Union relations
* Future enlargement of the European Union
There are currently nine states recognised as candidates for membership of the European Union: Albania, Bosnia and Herzegovina, Georgia, Moldova, Montenegro, North Macedonia, Serbia, Turkey, and Ukraine. Kosovo (the independence of which is ...
* Liechtenstein–European Union relations
* Norway–European Union relations
* Faroe Islands and the European Union
* United Kingdom–European Union relations
* Arctic policy of the European Union
* European Union–NATO relations
Further reading
* Baldur Thorhallsson. 2019.
Iceland and European Integration
" in the Oxford Research Encyclopedia of Politics.
References
Notes
External links
; Official websites
Iceland's application to the EU
Icelandic Ministry for Foreign Affairs
Icelandic mission to the EU
Icelandic Ministry for Foreign Affairs
European External Action Service
European External Action Service
European Union – Icelandic trade relations
European Commission
; News Portal
All related news on the Icelandic negotiations for EU membership
, MBL
; Lobbyist organisations
Iceland's EU Debate
Evrópusamtökin, cross-political organisation of Icelandic EU supporters
Evrópusamtökin, Euroblog
Heimssýn, the cross-political organisation of Icelandic eurosceptics
Icelandic Pro-EU membership website
Icelandic Anti-EU Membership
Yes-movement of Icelandic EU supporters
{{DEFAULTSORT:Accession Of Iceland To The European Union
2009 in Iceland
2009 in international relations
2009 in the European Union