European Union Application
Iceland has had a close relationship with the European Union (EU) throughout its development, but has remained outside (instead, joining the European Free Trade Area or EFTA). In 1972, the two sides signed a free trade agreement and in 1994 Iceland joined the European Economic Area which let itself and other non-EU states have access to the EU's internal market in exchange for Iceland contributing funds and applying EU law in relevant areas. The EU is Iceland's most important trading partner with a strong trade surplus in 2008/9 in terms of goods, services and foreign direct investment. Iceland also participates in the Schengen Area (as well as relevant police and judicial cooperation) and has non-voting representation in some EU agencies.
However after Iceland's financial crash in 2009, it has sought membership of the EU and the euro. Iceland applied on 16 July 2009 and negotiations formally began 17 June 2011. After an agreement is concluded, the accession treaty must be ratified by every EU state and be subject to a national referendum in Iceland. Since the application was submitted, popular support has declined and contentious issues around Icelandic fisheries may derail negotiations. However the Icelandic government is confident an agreement can be reached based on the flexibility shown by the EU in its previous negotiations with Norway.
Read more about this topic: Foreign Relations Of Iceland
Famous quotes containing the words european, union and/or application:
“We say that slavery has vanished from European civilization, but this is not true. Slavery still exists, but now it applies only to women and its name is prostitution.”
—Victor Hugo (1802–1885)
“The only hope of socialism resides in those who have already brought about in themselves, as far as is possible in the society of today, that union between manual and intellectual labor which characterizes the society we are aiming at.”
—Simone Weil (1909–1943)
“The receipt to make a speaker, and an applauded one too, is short and easy.—Take of common sense quantum sufficit, add a little application to the rules and orders of the House, throw obvious thoughts in a new light, and make up the whole with a large quantity of purity, correctness, and elegancy of style.”
—Philip Dormer Stanhope, 4th Earl Chesterfield (1694–1773)