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Iceland–European Union relations

From Wikipedia, the free encyclopedia

Bilateral relations
Euro-Icelandic relations
Map indicating locations of European Union and Iceland

European Union

Iceland

Iceland is heavily integrated into theEuropean Union via the Agreement on theEuropean Economic Area and theSchengen Agreement, despite its status as a non-EU member state. Iceland applied for membership in 2009. TheMinister for Foreign Affairs sent a letter in 2015 that ended the application process.

Comparison

[edit]
European UnionIceland
Population449,206,579[1]390,433
Area4,324,782 km2 (1,669,808 sq mi)[2]102,775 km2 (39,682 sq mi)
Population density104/km2 (269/sq mi)3.79/km2 (9.84/sq mi)
CapitalBrussels (de facto)Reykjavík
Global cities[3]Amsterdam,Berlin,Brussels,Dublin,Frankfurt,Lisbon,Luxembourg,Madrid,Milan,Munich,Paris,Prague,Rome,Stockholm,Vienna,WarsawNone
GovernmentSupranationalparliamentarydemocracy based on theEuropean treaties[4]Unitaryparliamentaryrepublic
Current leaders
Official languages24 official languages, of which 3 considered "procedural" (English,French andGerman)[5]Icelandic
Main religions
Ethnic groups
  • Germans (c. 83 million),[6]
  • French (c. 67 million)
  • Italians (c. 60 million)
  • Spanish (c. 47 million)
  • Poles (c. 46 million)
  • Romanians (c. 16 million)
  • Dutch (c. 13 million)
  • Greek (c. 11 million)
  • Portuguese (c. 11 million)
  • and others
GDP (nominal)$16.477 trillion, $31,801 per capita$27 billion, $75,700 per capita

Integration

[edit]
Though Iceland is not in the EU, it is a member of the Schengen area

Iceland is a member of theEuropean Free Trade Association (EFTA), a grouping of four non-EU European countries, and is also part of theEuropean Economic Area (EEA). Through the EEA, Iceland participates with a non-voting status in certain EU agencies and programmes, including enterprise, environment, education (including theErasmus Programme[7]) and research programs. Iceland also contributes funds to "social and economic cohesion" in the EU/EEA.[8] Iceland also frequently consults the EU on foreign affairs and frequently aligns itself toEU foreign policy. Iceland also participates in EU civilianpeacekeeping missions.[7]

Iceland is a member of theNordic Passport Union[8] and theSchengen Area, 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.[7] Iceland is also associated with theDublin Convention on justice and home affairs cooperation. Iceland also has links to several EU member states through its membership of theNordic Council.

Use of the euro

[edit]

During the2008–2011 Icelandic financial crisis, instability in theIcelandic króna led to discussion inIceland about adopting the euro. However,Jürgen Stark, a Member of the executive board of theEuropean Central Bank, has stated that "Iceland would not be able to adopt the EU currency without first becoming a member of the EU".[9] As of the ECB's May 2012 convergence report, Iceland did not meet any of the convergence criteria.[10] One year later, the country managed to comply with the deficit criteria and had begun to decrease itsdebt-to-GDP ratio,[11] but still suffered from elevatedHICP inflation and long-term governmental interest rates.[12][13]

Reasons for Iceland's non-membership of the European Union

[edit]

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 itsCommon Fisheries Policy) will have an adverse effect on the fishing industry.[14][15][16]
  • The perception that EU membership will have an adverse effect on Iceland's agricultural sector.[15]
  • Iceland's strong ties with the United States, which included significant economic, diplomatic and military assistance, decreased Iceland's dependence on European countries.[15]
  • The victories in theCod Wars (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.[15]
  • TheIcelandic electoral system favors rural areas, which are more eurosceptic.[15]
  • 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.[15]
  • Icelandic nationalism and the legacy ofIceland's struggle for national sovereignty.[17][18][16]
  • The impact of theIcesave dispute with the Netherlands and the UK.[17]

Trade relations

[edit]
See also:Economy of Iceland
In fisheries, the most important sector of the Icelandic economy, Iceland has a €879 million trade surplus with the EU.

Economic relations between Iceland and the European Union are primarily governed by two agreements: a bilateralfree trade agreement signed in 1972, and the agreement on theEEA in 1994. The EEA was established to give Iceland, among other European countries outside the EU, access to theEU 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 allEU directives applicable to thefree 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.[8][19]

Icelandic-European trade[20]
Direction of tradeGoods (2016)Services (2016)Investment (2016)
EU to Iceland€2.9 billion€1.4 billion€8.5 billion
Iceland to EU€3.6 billion€1.2 billion€-0.8 billion

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 onfisheries andrenewable energy (primarilyhydroelectricity andgeothermal energy - seeenergy in Iceland for more details), but it has been diversifying intoaluminium production,pharmaceuticals,information technologies,tourism and thefinancial sector. 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 the2008–2011 Icelandic financial crisis, its commercial services sector had been growing rapidly, accounting for almost 35% of total exports (goods and services combined).[19]

Accession of Iceland to the European Union

[edit]
Accession of Iceland to theEuropean Union
StatusApplication frozen
Application
Screened & negotiations commence
Chapters closed11
Memberships & Treaties
Association Agreement
Economic and monetary policy
Travel
Energy
Foreign and military policy
Human rights and international courts
International Court of Justice (ICJ)
Impact(27+1)
Population446,828,803
Area4,233,262 km2
1,634,472 mi2
HDI0.896
GDP (PPP)$25.399 trillion
GDP per capita (PPP)$56,928
GDP$17.818 trillion
GDP per capita$39,940
Gini30.0
Official Languages24

Iceland applied to join theEuropean Union on 16 July 2009 and formal negotiations began on 27 July 2010.[21] However, on 13 September 2013 theGovernment of Iceland dissolved its accession team and suspended its application to join the EU. On 12 March 2015, Foreign Minister of IcelandGunnar Bragi Sveinsson stated that he had sent a letter to the EU withdrawing the application for membership, without the approval of theAlthing, though the European Union stated that Iceland had not formally withdrawn the application.[22]

If negotiations were to resume, Iceland would face controversial issues on fisheries which could potentially derail an agreement, despite already being a member of theEuropean Economic Area[23] (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.[24]

Pre-2008 opinion

[edit]
flagIceland portal

From1995 to2007 the government coalition of theconservativeIndependence Party (Sjálfstæðisflokkurinn) and theconservativeProgressive Party (Framsóknarflokkurinn), opposed joining the EU, while the oppositionSocial Democratic Alliance (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.[25] 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.[26]

FormerPrime MinisterHalldór Ásgrímsson 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 theEurozone, especially whether Denmark, Sweden and the UK would have adopted theeuro or not.[27] His prediction received some criticism, not the least from people within his own government.[28]

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 theUniversity of Iceland 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.[29]

Following the2007 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.[30]

Due to Iceland's limited currency,[clarification needed] the government has explored the possibility of adopting the euro without joining the European Union. The EU, however, says that Iceland cannot join theEconomic 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

[edit]
See also:2008–2011 Icelandic 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.[31] However, in October 2008, during talks to repatriate a portion of Iceland's foreign invested pension funds—Iceland having been particularly affected by the2008 financial crisis—the unions demanded that Iceland apply for EU membership in return forwage restraint.[32]

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".[33]

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.[34]

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.[35] 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.[36]

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.[26]

2009 election and parliamentary debate

[edit]

Iceland's finance minister,Steingrímur J. Sigfússon, ahead of the country's first elections since thefinancial crisis, stated that "any decision for Iceland to join theEuropean Union 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.[37]

The2009 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.[38][39][40] The Social Democratic Alliance made joining the EU a key issue in their campaign.[41]

After the win of the pro-EU Social Democratic Alliance in the election, Prime MinisterJóhanna Sigurðardóttir spoke of an immediate application to the European Union andadoption of the euro within four years as a way to deal with the country's debt.[42]

In late April 2009, it was announced that theUnited Kingdom, which at the time was a member state of the European Union with whom Iceland has had a long history offishing and territorial water disputes, supported Iceland joining the EU.[43]

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.[44]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.[45] 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.[46]

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.[47]

The motion to file an application for membership was officially introduced in parliament on 25 May 2009.[48][49] Voting was to have been held on 13 July, but was postponed until 16 July.[50][51][52] 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.[53]

Application for membership

[edit]
Countries that could join the European Union
  Current members
  Candidate countries
  Applicant / potential candidate countries
  Membership possible
  Membership not possible

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 theCopenhagen 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 CommissionerOlli Rehn claimed that negotiations on an accession treaty would take less than a year, because Iceland had already adopted two-thirds of EU legislation[54] in relation to theEEA.[55] He had on other occasions claimed that the negotiations could take up to four years.[56]

On 30 January 2009, Rehn commented that Iceland could enter the European Union promptly in 2011, at the same time asCroatia, saying that Iceland is an old democracy but also that it should not get special treatment. Fishing quotas andIcelandic whaling may be the toughest issues in any such negotiations.[57]

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).[58] 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.[59] However the government stated that it planned to complete negotiations by the end of 2010.[60]

On 17 July 2009, the application for Icelandic membership of the EU was handed to the government ofSweden, which then held the presidency of theCouncil of the European Union, by the ambassador of Iceland inStockholm.[61] The application was again handed over by the Icelandic foreign minister to the Swedish one in a ceremony in Stockholm on 23 July 2009.[62]

The letter of application was dated 16 July 2009.[63] The application was acknowledged by the Council of the European Union on 27 July 2009.[64]

Accession negotiations

[edit]

Sweden, then holder of theEU presidency, announced that it would prioritise Iceland's EU accession process.[65] On 24 July, the Lithuanian Parliament unanimously approved and gave full support for Iceland's membership application to join the European Union.[66] Later, on 27 July,Malta also announced that it supports Iceland's EU bid.[67]

In September 2009, theSpanish 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.[68] On 2 November, Iceland selected a chief negotiator for the membership negotiations with the EU:Stefán Haukur Jóhannesson, Iceland's Ambassador toBelgium.[69]

In January 2010 theIcesave dispute became an issue. TheUnited Kingdom and theNetherlands 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 theconvergence criteria. Spanish Foreign MinisterMiguel Ángel Moratinos, who then held the Presidency of the European Union, has said that the Icesave dispute does not impact Iceland's application.[70]David Miliband, then British Foreign Minister, reaffirmed the UK's continued support for Iceland's EU application.[70] Additionally, the Dutch Foreign MinisterMaxime 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.[71]

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.[72] 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.[73] The German Parliament voted in favour of opening membership negotiations on 22 April 2010.[74] TheEuropean Council decided in June to begin negotiations,[75] and on 17 June 2010, the EU granted official candidate status to Iceland by formally approving the opening of membership talks.[76]

Negotiations for membership of the EU started on 27 July 2010,[77] with screening of specificacquis chapters beginning on 15 November 2010.[78] Iceland became eligible for pre-accession funding from the EU through theInstrument for Pre-Accession Assistance (IPA) since July 2010.[79]

The first annual report on negotiations was published in November 2010:[80] the main issues at stake remained thefisheries sector andwhale hunting, while progress has been made concerning theIcesave dispute.[81]

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 MinisterÖssur 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.[23]

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-plaguedIcelandic króna. Iceland'sHICP 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 thecapital 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.[82]

2013 election and withdrawal of application

[edit]

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.[83] A similar proposal was submitted to the Icelandic parliament in May 2012, but was rejected by a vote of 25 for and 34 against.[84] TheIcelandic parliament had yet to vote on the new proposal, which were supported primarily at the time by the oppositionIndependence Party andProgressive Party.[85] The leaders of both governing parties, theSocial Democratic Alliance andLeft-Green Movement, stated that they did not support the motion.[86] However, some MPs from the Left-Green Movement declared their support for the measure.[87] On 10 January 2013, the proposal was formally adopted by the Foreign Affairs committee.[88]

On 14 January, the Icelandic government announced that negotiations would be slowed, and that an accession agreement would not be reached before theparliamentary election in April.[89] No new chapters would be opened prior to the election, though negotiations would continue on chapters that had already been opened.[90] 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,[91][92] 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.[93]

On 19 March 2013,Þorgerður Katrín Gunnarsdóttir, an Independence Party MP, put forward a motion in theAlthing 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.[94] 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.[95][96][97]

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 areferendum.[98] However, under Icelandic law, it is not the Government but the Icelandic Parliament which decides to end negotiations.[99] On 13 June, Iceland's Foreign MinisterGunnar Bragi Sveinsson informed the European Commission that the newly elected government intended to "put negotiations on hold".[100] 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".[101]

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".[102] 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."[103] 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."[104] 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 theAlthing, though the European Union stated that Iceland had not formally withdrawn the application.[22][105]

In 2017, Iceland'snewly elected government announced that it would hold a vote in parliament on whether to hold a referendum on resuming EU membership negotiations.[106][107] 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.[108]

There was a renewed call in 2022 for a referendum on resuming EU membership negotiations.[109]

Following the2024 Icelandic parliamentary election, theSocial Democratic Alliance,Viðreisn, andPeople's Party formed a new coalition government, which agreed to hold a referendum on resuming negotiations on EU membership by 2027.[110]

Timeline

[edit]

EU affiliation ahead of membership application

EU membership application and the preparational phase

  • 2009-07-17: Iceland submits EU membership application.[111]
  • 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.[111]
  • 2010-06-17: Iceland officially recognised as an accession candidate by the European Council.[citation needed]
  • 2010-07-26: The Council approved the framework for accession negotiations with Iceland.[111]
  • 2010-07-27: Preparational phase of the membership negotiation process starts (Accession Conference nr.1).[111]
  • 2010-11-15: Screening process started.
  • 2011-06-21: Screening process ended.[112]

EU membership negotiations

  • 2011-06-27: Accession Conference nr.2.[111]Real negotiations started with the first four chapters being opened, of which two were completed and closed on the same day.[113][114]
  • 2011-10-19: Accession Conference nr.3.[111]Two chapters were opened and closed immediately. In total 6 out of 33 chapters have now been opened (of which 4 have been closed).[115]
  • 2011-12-12: Accession Conference nr.4.[111]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).[116]
  • 2012-03-30: Accession Conference nr.5.[111]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).[117]
  • 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.[84]
  • 2012-06-22: Accession Conference nr.6.[111]Three new chapters opened. In total 18 out of 33 chapters have now been opened (of which 10 have been closed).[118][119]
  • 2012-10-24: Accession Conference nr.7.[111]Three new chapters opened. In total 21 out of 33 chapters have now been opened (of which 10 have been closed).[120]
  • 2012-12-18: Accession Conference nr.8.[111]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).[121]

Negotiation progress

[edit]
Acquis chapterEC assessment (2012)[122]Screening startedScreening completedChapter openedChapter closed
1. Free movement of goodsGenerally already applies the acquis2010-12-072010-12-08[123]2012-12-18[124]
2. Freedom of movement for workersGenerally already applies the acquis2011-02-092011-02-09[125]2011-10-19[115]2011-10-19[115]
3. Right of establishment & freedom to provide servicesGenerally already applies the acquis2010-12-09
4. Free movement of capitalSome level of preparation2010-12-102010-12-10
5. Public procurementGenerally already applies the acquis2010-11-152010-11-15[126]2011-06-27[127]
6. Company lawGenerally already applies the acquis2010-11-162010-11-16[128]2011-12-12[129]2011-12-12[129]
7. Intellectual property lawGenerally already applies the acquis2010-12-202010-12-20[130]2011-10-19[115]2011-10-19[115]
8. Competition policyGenerally already applies the acquis2010-12-062010-12-06[131]2012-03-30[132]2012-12-18[124]
9. Financial servicesGenerally already applies the acquis2010-11-182010-12-15[133]2012-10-24[134]
10. Information society & mediaGenerally already applies the acquis2010-11-172010-11-17[135]2011-06-27[127]
11. Agriculture & rural developmentEarly stage2010-11-302011-01-27[136]
12. Food safety, veterinary & phytosanitary policyModerately prepared2011-02-142011-03-31[137]
13. FisheriesSome level of preparation2010-12-162011-03-02[138]
14. Transport policyGood level of preparation2011-05-042011-06-092012-06-22[118]
15. EnergyModerately prepared2011-05-122011-06-20[139]2012-03-30[132]
16. TaxationModerately prepared2011-02-032011-03-04[140]2012-12-18[124]
17. Economic & monetary policyGenerally already applies the acquis2011-03-172011-05-17[141]2012-12-18[124]
18. StatisticsModerately prepared2011-05-022011-06-072012-10-24[134]
19. Social policy & employmentGenerally already applies the acquis2011-02-072011-03-16[142]2012-06-22[118]
20. Enterprise & industrial policyGenerally already applies the acquis2011-04-122011-05-25[143]2011-12-12[129]2011-12-12[129]
21. Trans-European networksGenerally already applies the acquis2011-05-062011-06-102011-12-12[129]2011-12-12[129]
22. Regional policy & coordination of structural instrumentsGood level of preparation2011-01-312011-02-22[144]2012-12-18[124]
23. Judiciary & fundamental rightsGenerally already applies the acquis2011-01-112011-02-11[145]2011-12-12[129]2011-12-12[129]
24. Justice, freedom & securityGood level of preparation2011-04-142011-05-24
25. Science & researchGenerally already applies the acquis2010-11-252011-01-14[146]2011-06-272011-06-27[127]
26. Education & cultureGenerally already applies the acquis2010-11-262011-01-14[147]2011-06-272011-06-27[127]
27. EnvironmentGood level of preparation2010-11-222011-01-19[148]2012-12-18[124]
28. Consumer & health protectionGenerally already applies the acquis2011-04-112011-05-16[149]2012-03-30[132]2012-03-30[132]
29. Customs unionGood level of preparation2011-03-082011-04-06[150]2012-10-24[134]
30. External relationsGenerally already applies the acquis2011-04-082011-05-19[151]2012-12-18[124]
31. Foreign, security & defence policyGenerally already applies the acquis2011-04-072011-05-202012-03-30[132]2012-03-30[132]
32. Financial controlModerately prepared2010-11-292011-02-022012-06-22[118]
33. Financial & budgetary provisionsGood level of preparation2011-03-072011-04-04[152]2011-12-12[129]
34. InstitutionsNothing to adopt
35. Other issuesNothing to adopt
Progress33 out of 33[153]33 out of 33[153]27 out of 3311 out of 33

The 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

[edit]
This section needs to beupdated. Please help update this article to reflect recent events or newly available information.(November 2023)
PartyPositionMain argument as stated on party websites and political compass
Bright FutureYesSupports the continuation of accession negotiations and a referendum on joining the EU.[154]
Centre PartyNo"The center party believes Iceland's interests are better served outside the EU than within the customs union. In that light, the party does not see any reason to hold a referendum.[...]"[155]
Independence PartyNo"The Independence Party puts forth the clear demand that the application for Iceland's membership of the European Union will be withdrawn without delay."[156]
Left-Green MovementNo"EU-membership would diminish the independence of Iceland even more than the EEA Agreement does and jeopardise Iceland's control over its resources."[157]
People's PartyNo"We do not want to join the EU, but we are open to referendums."[158]
Pirate Party IcelandNeutralThe party concludes that it should not be up to politicians to decide whether Iceland joins the European Union but to the general population after transparent and informative accession talks.[159]
Progressive PartyNo"The Progressive Party believes the interests of the country and the nation are best secured outside the EU."[160]
ViðreisnYes[161]
Social Democratic AllianceYes"We want to apply for an EU-membership and start negotiations. We will seek a national unity in this matter and use the national referendum as the highest court."[162][163]
2009–2013
GroupPartyPosition
GovernmentSocial Democratic AllianceYes
Left-Green MovementNo
OppositionIndependence PartyNo
Progressive PartyNo
The MovementNeutral
No seats in the parliamentCitizens' MovementYes[164]
Liberal PartyNo[165]
Best PartyNeutral
2013–2016
GroupPartyPosition
GovernmentProgressive PartyNo
Independence PartyNo
OppositionSocial Democratic AllianceYes
Left-Green MovementNo
Bright FutureYes
Pirate Party IcelandNeutral
ViðreisnYes
2016–2017
GroupPartyPosition
GovernmentIndependence PartyNo
ViðreisnYes
Bright FutureYes
OppositionLeft-Green MovementNo
Pirate Party IcelandNeutral
Progressive PartyNo
Social Democratic AllianceYes
2017–2024
GroupPartyPosition
GovernmentIndependence PartyNo
Left-Green MovementNo
Progressive PartyNo
OppositionSocial Democratic AllianceYes
Centre PartyNo
Pirate Party IcelandNeutral
People's PartyNo
ViðreisnYes
2024-
GroupPartyPosition
GovernmentSocial Democratic AllianceYes
ViðreisnYes
People's PartyNo
OppositionIndependence PartyNo
Centre PartyNo
Progressive PartyNo

Public opinion

[edit]

A poll released in January 2014 found that 67.5% of Icelanders support holding a referendum on the continuation of accession negotiations.[166] 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.[167][168] The decision led to thousands of protesters taking to the streets outside of the Parliament buildings in Reykjavík.[169][170][171] By 28 February 82% were in favour of holding the referendum.[172] More than 40,000 people (16.5% of Iceland's voters) have signed a petition demanding that the promised referendum be held.[171][173] On 25 February,Ragnheiður Ríkharðsdóttir, chairman of the parliamentary group of the Independence Party, announced her intention not to vote in favour of the proposal.[174] 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".[175] The bill was not approved before parliament's summer recess.[176] The latest poll in June 2025 showed an approvel rate to join the EU of 54%.[177]

Various polls have been taken on the public opinion of starting accession negotiations, joining the EU or adopting theeuro.

DatePollerQuestionYesNoUnsure
May 1999DV[178]Start negotiations57.1%27.7%15.2%
March 2002Capacent-Gallup[179]Start negotiations91%5%4%
Join57%25%23%
Adopt Euro66%33%12%
August 2005Capacent-Gallup[180]Start negotiations55%37%8%
Join43%37%20%
Adopt Euro37%54%9%
February 2006Fréttablaðið[181]Join34%42%24%
September 2007Capacent-Gallup[182]Start negotiations59%26%15%
Join48%34%18%
Adopt Euro53%37%10%
February 2008Fréttablaðið[183]Join55.1%44.9%
More reasons than last year54.7%7.3%38.1%
18 October 2008CapacentGallup[184]Referendum on application70%17.5%12.5%
24 November 2008Fréttablaðið[185]Submit application60%40%
January 2009Capacent Gallup[186]Join38%38%24%
26 January 2009Fréttablaðið[187]Submit application40%60%
March 2009[188]Start negotiations64%28%8%
11 April 2009Fréttablaðið[189]Submit application45.6%54.4%0%
5 May 2009CapacentGallup[190]Start negotiations61%27%12%
Join39%39%22%
10 June 2009CapacentGallup[191]Referendum on application76.3%17.8%5.8%
30 July 2009Fréttablaðið[192]Start negotiations51%36%13%
4 August 2009CapacentGallup[193]Join34.7%48.5%16.9%
15 September 2009CapacentGallup[194]Join32.7%50.2%17%
If referendum now, how would you vote[195]38.5%61.5%0%
Happy with application?39.6%43.2%17.1%
5 November 2009Bifröst University Research Institute[196][197]Join29.0%54%17%
Start negotiations50.5%42.5%7%
28 February 2010CapacentGallup[198]Join33.3%55.9%10.8%
5 March 2010CapacentGallup[199]Join24.4%60%15.5%
If referendum now, how would you vote30.5%69.4%0%
14 June 2010MMR[200]Maintain EU application24.3%57.6%18.1%
6 July 2010CapacentGallup[201]Join26%60%14%
2 September 2010CapacentGallup[202]Start negotiations38.8%45.5%15.7%
29 September 2010Fréttablaðið[203]Continue with negotiations64.2%32.8%3%
24 January 2011Fréttablaðið[204]Continue with negotiations65.4%34.6%0%
10 March 2011CapacentGallup[205]Join31.4%50.5%18%
If referendum now, how would you vote38.9%61.1%0%
17 March 2011MMR[206]Join30%55.7%14.2%
16 June 2011CapacentGallup[207]Join37.3%50.1%12.6%
30 June 2011CapacentGallup[208]Maintain EU application38.5%51.0%10.5%
11 August 2011CapacentGallup[209]Join35.5%64.5%0%
12 September 2011Fréttablaðið[210]Continue with negotiations63.4%36.6%0%
16 November 2011MMR[211]Maintain EU application35.3%50.5%14.2%
17 November 2011CapacentGallup[212]Continue with negotiations53.1%46.9%0%
12 December 2011Fréttablaðið[213]Continue with negotiations65.3%34.7%0%
19 January 2012CapacentGallup[214]Join31.5%53.5%15%
19 January 2012MMR[215]Adopt Euro28%52%20%
22 February 2012Capacent Gallup[216]Join26.3%56.2%17.5%
If referendum now, how would you vote32.6%67.4%0%
Maintain EU application42.6%43.6%13.9%
27 April 2012University of Iceland[217]Join27.5%53.8%18.7%
15 October 2012Capacent Gallup[218]Join27.3%57.6%15.0%
12 November 2012Capacent Gallup[219]Maintain EU application36.4%53.5%9.9%
18 January 2013Fréttablaðið[220]Continue with negotiations48.5%36.4%15%
13 February 2013MMR[221]Join24.2%63.3%12.5%
6 March 2013Capacent Gallup[222]Join25.1%58.5%16.5%
If referendum now, how would you vote30%70%0%
Maintain EU application43.5%44.6%11.9%
15 March 2013Capacent Gallup[223]Continue and complete negotiations54%35%11%
23 April 2013University of Iceland[224]Join27.6%52.2%20.2%
Continue with negotiations52.7%30.7%16.5%
5 March 2014Capacent Gallup[225]Join37%47%16%
Hold referendum on resuming negotiations72%21%7%
February 2016Gallup[226]Join40.9%59.1%
Resume negotiations45.4%40.3%
September 2016MMR[227]Join28.2%50.6%
November 2016MMR[227]Join20.9%57.8%21.3%
February 2017MMR[228]Join25.9%54%20.1%
12–26 March 2019Maskína[229]Join31.6%43.0%25.4%
30 January–3 February 2020Maskína[230]Join31.4%39.4%29.3%
21 January–1 February 2021Maskína[231]Join30%42%29%
March 2022Gallup[232]Join47%33%20%
June 2022Prósent[233]Join48.5%34.9%16.7%
November 2022Prósent[234]Join42.8%35.1%22.1%
December 2022Maskína[235]Hold referendum on resuming negotiations47.9%24.4%27.5%
3–7 February 2023Maskína[236]Join40.8%35.9%23.3%
24–28 April 2023Maskína[237]Hold referendum on resuming negotiations59%18%23%
Join44%34%22%
17–22 August 2023Maskína[238]Hold referendum on resuming negotiations57%19%24%
Join40%33%27%
13–20 June 2024Maskína[239]Join42.4%35.7%21.9%
16–24 September 2024Maskína[240]Join45.3%35.7%16%
17–31 December 2024Prósent[241]Hold referendum on resuming negotiations58%27%15%
Adopt Euro53%27%20%
Join45%35%20%

Comparison with EU countries

[edit]

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 othermember states.[242][243]

Population figuresPopulation density
EU rankCountryPopulationEU rankCountryDensity
IcelandIceland329,100IcelandIceland3.3
27MaltaMalta519,56227FinlandFinland18.0
26LuxembourgLuxembourg562,95826SwedenSweden23.8
25CyprusCyprus847,00825EstoniaEstonia30.3
14SwedenSweden (EU median)9,747,35514SloveniaSlovenia (EU median)102.4
European UnionEU average18,149,682European UnionEU average117.5
2FranceFrance66,415,1612NetherlandsNetherlands500.7
1GermanyGermany83,157,201[6]1MaltaMalta1,352.4

Iceland's GDP per capita is among the highest in Europe as is shown in the following tables:[244]

EU rankingCountryGDP per capita (PPP)
1LuxembourgLuxembourg$140,694
2Republic of IrelandIreland$124,596
3DenmarkDenmark$69,273
4NetherlandsNetherlands$68,572
5AustriaAustria$64,751
IcelandIceland$64,621
European UnionEU average$53,201
27BulgariaBulgaria$28,593

TheIcelandic language would be one of the official languages of the EU with the least speakers in terms of native speakers (together withIrish andMaltese).

Comparison to the EU and impact of joining
Member countriesPopulationArea (km2)GDP
(billions, PPP)
GDP
per capita (PPP)
Languages
 Iceland321,857103,001$19.800$64,621Icelandic
EU27446,824,5644,138,88124
EU27+1447,146,421
(+0.07%)
4,241,882
(+2.48%)
25

Iceland's foreign relations with EU member states

[edit]

Diplomatic relations between Iceland and EU member states

[edit]
CountryIcelandic embassyReciprocal embassyNotes
 AustriaCopenhagen, DenmarkIcelandic Permanent Mission toCTBTO,IAEA andOSCE
 BelgiumBrusselsOslo, NorwayIcelandic Mission to theEU and Permanent Delegation toNATO inBrussels
 DenmarkCopenhagen
Consulates General:Tórshavn,Nuuk
Reykjavík
 FinlandHelsinkiReykjavík
 FranceParisReykjavíkIcelandic Mission toOECD,UNESCO andCouncil of Europe
 GermanyBerlinReykjavík
 ItalyParis, FranceOsloIcelandic Permanent Mission toFAO,IFAD andWFP
 PolandWarsawReykjavíkIcelandic Embassy was opened in Warsaw in 2022
 SpainParis, FranceOslo
 SwedenStockholmReykjavík

See also

[edit]

Further reading

[edit]

References

[edit]

Notes

[edit]
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  125. ^End of screening meeting on Freedom of Movement For WorkersArchived 15 August 2011 at theWayback Machine
  126. ^First screening meeting between Iceland and the EU overArchived 15 August 2011 at theWayback Machine
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  130. ^Screening meeting on Intellectual property law concludedArchived 15 August 2011 at theWayback Machine
  131. ^Screening meeting on Competition policy concludedArchived 15 August 2011 at theWayback Machine
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  135. ^Screening meeting on Information society and media concludedArchived 15 August 2011 at theWayback Machine
  136. ^Screening meeting on Agriculture and rural development concludedArchived 15 August 2011 at theWayback Machine
  137. ^Screening meeting on Food Safety concludedArchived 15 August 2011 at theWayback Machine
  138. ^Screening Meeting on Fisheries ConcludedArchived 15 August 2011 at theWayback Machine
  139. ^Screening meeting on energy concludedArchived 21 March 2012 at theWayback Machine
  140. ^Screening Meeting on Taxation concludedArchived 15 August 2011 at theWayback Machine
  141. ^Screening meeting on Economic and Monetary Policy concludedArchived 15 August 2011 at theWayback Machine
  142. ^Screening on Social Policy and Employment ConcludedArchived 15 August 2011 at theWayback Machine
  143. ^Screening on enterprise and industrial policy concludedArchived 15 August 2011 at theWayback Machine
  144. ^Screening on Regional Policy and Coordination of structural instrument concludedArchived 21 March 2012 at theWayback Machine
  145. ^Screening meeting on Judiciary and fundamental rights concludedArchived 15 August 2011 at theWayback Machine
  146. ^Screening meeting on science and research concludedArchived 15 August 2011 at theWayback Machine
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  150. ^Screening meeting on Customs Union concluded in BrusselsArchived 15 August 2011 at theWayback Machine
  151. ^Screening meeting on External Relations concludedArchived 15 August 2011 at theWayback Machine
  152. ^Screening meeting on Financial and Budgetary Provisions concludedArchived 15 August 2011 at theWayback Machine
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