Image Credentials: Image Title: Iceland and EU to Launch Defence and Security Agreement Talks Source: (sora.chatgpt) Date: June 2025 Attribution: Created by AI-generated imagery (sora.chatgpt), it does not depict a real-world scene.
By Open Chronicle with Agencies
Brussels, July 17, 2025 — The European Commission has announced the start of negotiations on a new bilateral defence and security agreement between Iceland and the European Union, marking a significant step in regional security cooperation.
European Commission President Ursula von der Leyen announced after a high-level meeting with Icelandic Prime Minister Kristrún Frostadóttir and Foreign Minister Þorgerður Katrín Gunnarsdóttir.
“With this agreement, Iceland would gain access to our SAFE initiative, which invests around €150 billion each year in defence and security,” von der Leyen said.
I had an excellent meeting with @KristrunFrosta
Iceland is an integral part of the European family — and the challenges we face, we face together.
We discussed Iceland’s role in our efforts to strengthen the security and defence of our continent, as well as the evolving… pic.twitter.com/4ParDH41Qk
— Ursula von der Leyen (@vonderleyen) April 9, 2025
A New Pillar in Iceland’s Defence Strategy
The proposed agreement will be independent of Iceland’s current defence arrangements, including its NATO membership and its bilateral security treaty with the United States. Instead, it would become a third pillar in Iceland’s evolving defence and foreign policy.
Negotiations are expected to begin in the coming weeks, with both sides expressing optimism that a deal could be finalized by the end of 2025.
The EU already maintains defence partnerships with non-member allies such as Norway, Canada, and the United Kingdom. Iceland’s inclusion would further align its strategic posture with Europe’s shared security framework.
Closer Integration with European Defence
While not an EU member, Iceland is part of the European Economic Area (EEA) and the Schengen Zone, allowing it to cooperate in various areas of European policy. The new agreement would significantly expand that cooperation into defence and security, areas traditionally outside the EEA scope.
“This is a natural evolution of Iceland’s role in Europe,” said Prime Minister Frostadóttir. “It reflects the shared responsibility we have for peace, deterrence, and resilience in the North Atlantic.”
Trade Relations Also Under Review
During the same meeting, Prime Minister Kristrún Frostadóttir confirmed that a comprehensive review of Iceland’s trade relations with the EU, originally proposed in December 2023, will soon be launched. This review will evaluate Iceland’s position in the EEA and identify opportunities to deepen economic ties.
Strategic Importance
Though Iceland has no standing army, its geostrategic location in the North Atlantic makes it a vital link in transatlantic security, particularly in areas such as maritime surveillance, cybersecurity, and Arctic operations.
This defence agreement reflects a broader trend within the EU to strengthen partnerships with key non-member states amid evolving security challenges, especially in the wake of Russian aggression in Ukraine and growing concerns about global stability.