The European Parliament adopted a resolution in which the prospect of Iceland becoming a new EU Member State is welcomed. although it is also asked to cease all whaling. On the other hand, the controversy of repayments to British and Dutch governments following the collapse of Icelandic banks needs to be resolved "bilaterally", adds the resolution.

MEPs endorse the decision by EU leaders to open membership talks with Iceland, which submitted its application in July 2009. However, Parliament asks Iceland to cease all whaling which is in contradiction with EU laws. The reservations the country has lodged with the International Whaling Commission should also be dropped.

The Parliament also remarks Iceland's accession would allow the EU to play a more active role in the Arctic Region. 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.

On the Icesave bank issue, MEPs recall that Iceland is obliged to ensure payment of the minimum compensation to Icesave depositors in the United Kingdom and the Netherlands, as the EFTA Surveillance Authority said in its letter of formal notice.

MEPs also point out that although, as a member of the European Economic Area, Iceland complies with most EU laws, it still needs to reform substantially the organisation and functioning of its financial supervisory system and the way judges, prosecutors and supreme judicial authorities are appointed. The policy areas that will have to be fully negotiated with Iceland are:

• agriculture
• fisheries
• taxation
• economic
• monetary policy and external relations

Public support in Iceland for EU membership has declined since summer 2009, points out the resolution. MEPs ask the Icelandic authorities to initiate a public debate to address the concerns of Icelandic citizens regarding EU membership.

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.