Iceland and the European Economic Agreement: 25 Years of Cooperation

• Main Author: M. Elvira Méndez-Pinedo
• Format: Article in Journal/Newspaper
• Language: English
• Published: ADJURIS – International Academic Publisher 2021
• Subjects: iceland; european economic area; cooperation; international law; Law in general. Comparative and uniform law. Jurisprudence; K1-7720; Pillar; Iceland
• Online Access: https://doaj.org/article/ab2ee20e31924e3d9cb369dd4675b5f8

In 2019 the Minister for Foreign Affairs of Iceland presented for the first time a special report to the Parliament (Althingi) on the status and implementation of the European Economic Area (EEA) Agreement. This international/European treaty based on a two-pillar structure (EU on one side and EFTA-EEA States on the other) has transformed the Icelandic legal, political and economic environment in the 25 years since its ratification. The objective of this study is to review the story of this successful European cooperation (extension of the internal market and fundamental freedoms) while focusing on difficult issues that appeared in the aftermath of the financial crisis (Icesave saga, finally resolved in favour of Iceland by the EFTA Court). It also aims to explain some reasons behind Eurosceptism in the country. Primary sources are both legal acts and relevant case-law from European courts, combined with doctrinal studies in the fields of law and political science. Methodology is both descriptive and analytical since all legal issues are approached from a wider economic, political and sociological context. The most important finding of the study is that nothing substantially important has altered fundamentally the preference of Iceland for EEA cooperation rather than full EU integration.