Continuity and Change in Icelandic Security and Foreign Policy

This article addresses the security policy of Iceland and also foreign economic policy in terms of the changes its development may imply for Iceland's external relations. Iceland has concluded that there is no reason to change its security arrangement during the present transitional period in East-West relations. Looking further ahead, it appears fairly certain that if NATO remains intact, Iceland will want to stay in it. For the short term, there is no reason to believe that Iceland would want to make any changes to its defense agreement with the United States. Iceland's participation in the undertaking to establish a European Economic Space will, if negotiations succeed, imply a substantial change in the country's foreign policy and lead to much closer integration with Western Europe. The question of European Community membership is, however, not on the agenda and is not likely to be soon, but, in the longer run, it cannot be excluded. During the postwar period, Iceland has consistently pursued good relations with Western Europe and the United States. However the external situation will evolve, Iceland will prefer a policy that aims at a balanced relationship with both.