The prospect of Iceland becoming a new EU Member State is welcomed in a resolution adopted on Wednesday by the European Parliament.
Iceland's accession would allow the EU to play a more active role in the Arctic Region, says the resolution drafted by Cristian Dan Preda (EPP), which underlines the country's "strong democratic culture". Iceland is already part of the Schengen zone and a member of NATO and has had a free-trade agreement with the EU since 1973.
The controversy of repayments to British and Dutch governments following the collapse of Icelandic banks needs to be resolved "bilaterally", adds the resolution. Iceland is also asked to cease all whaling.
MEPs expect that the new EP-Iceland Joint Parliamentary Committee between the EP and the Althingi (Icelandic Parliament) will enhance an existing "fruitful collaboration" between the two sides.