Iceland´s home is in Europe
Iceland and the European Union have cooperated extensively across a broad range of areas over the last forty years. Iceland is a deep-rooted democracy that shares history, identity, values and interests with Europe.
Unique Cooperation in EEA/EFTA
Established in 1944, the Republic of Iceland joined the European Free Trade Association (EFTA) in 1970 and signed a bilateral Free Trade Agreement with the European Communities in 1972. In 1994, Iceland became fully integrated into the European single market when it joined the European Economic Area (EEA).
Through the EEA Agreement, Iceland has already taken on a large part of the EU´s single market legislation. In fact, 22 of the 35 chapters of all EU legislation has more or less been incorporated into Icelandic legislation, and Iceland participates in various EU programmes. Several thousand Icelanders travel, study and live in other European countries, mostly in the Nordic states but also in Germany, France and the UK. Likewise, a large majority of the 20 thousand foreigners who live in Iceland come from Europe.
Schengen and Foreign Affairs
Since 2001, Iceland has been part of Europe's border-free Schengen-zone along with twenty four other European states.
Iceland and the EU consult regularly in the area of foreign affairs. Within the framework of the EEA, Iceland has the opportunity to align with EU statements on foreign affairs and does so in almost all instances. Iceland has also participated in different EU civilian peace-keeping operations.
Iceland joined the United Nations in 1946, became a founding member of the OECD in 1948 and of NATO in 1949. Iceland is also a member of Council of Europe and the Organization for Security and Cooperation in Europe (OSCE), and participates actively in regional organizations involving the northern region of Europe, including the Arctic Council, the Council of Baltic Sea States (CBSS) and the Barents Euro-Arctic Council (BEAC).
Information on Iceland´s participation in the wider European integration process can be found in the Foreign Minister´s 2010 report to Parliament and on www.mfa.is