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Katarina Hovorkova Integration tendencies of Iceland into the EU until the global financial crisis and the impact of its economic situation on the EU membership

The aim of this paper is an analysis of potential integration tendencies of Iceland before the financial crisis into the European Communities / the European Union. We will also focus on political preferences of the country in context of the membership in international organizations and on economic benefits or negative implications of staying independent. This research indicates that before the outbreak of the global financial crisis, Iceland as a traditionally EU reluctant country, was not forced due to economic situation to apply for the EC/ EU membership and preferred the membership in the EFTA or the EEA, by which the national sovereignty as well as sensitive political issues were not endangered. In times of potential recessions, Iceland reached immediate economic needs beneficial for the country without political integration and membership in the EC/ EU.

Keywords: Iceland, European Union, financial crisis, integration, sovereignty.

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