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:
“I should think the American admiration of five-minute tourists has done more to kill the sacredness of old European beauty and aspiration than multitudes of bombs would have done.”
—D.H. (David Herbert)
“Some are petitioning the State to dissolve the Union, to disregard the requisitions of the President. Why do they not dissolve it themselves,—the union between themselves and the State,—and refuse to pay their quota into its treasury? Do not they stand in the same relation to the State that the State does to the Union? And have not the same reasons prevented the State from resisting the Union which have prevented them from resisting the State?”
—Henry David Thoreau (1817–1862)
“Most people, no doubt, when they espouse human rights, make their own mental reservations about the proper application of the word “human.””
—Suzanne Lafollette (1893–1983)