The Council for General Affairs and External Relations met on 27 July. The Ministers discussed EU enlargement and agreed to pass on Iceland's application for membership to the Commission. The ministers were also given a presentation of the Commission's proposal for a Baltic Sea Strategy, and discussed about other external issues. 

The Commission, with strong support from the Member States, presented its proposal for a Baltic Sea Strategy to the ministers. The strategy  increases cooperation between the countries in the Baltic Sea region, and involves measures to improve the environment, infrastructure and security in the region, but it also addresses the issue of improving conditions for increased economic prosperity. Cecilia Malmström, swedish Minister for EU Affairs, emphasised that the Baltic Sea Strategy could be seen as a model that can be used in other regions of the EU to foster closer cooperation. The aim is to reach a decision on the Baltic Sea Strategy at the Council meeting in October.

The ministers reached a unanimous agreement to submit Iceland’s application for membership of the EU to the Commission. The Commission will issue an opinion on the application for membership. The opinion will address Iceland’s preparedness to commence negotiations for membership. Based on the Commission’s opinion, the Council will then make the decision to grant Iceland the status of candidate country and will decide when negotiations on EU membership may commence.

The negotiations cover all of the EU’s policy areas. The areas most important to Iceland are expected to include agriculture, fisheries and the EU's common currency. Negotiations will result in an association treaty which sets out the conditions for membership and potential exemptions. When the negotiations are concluded, the European Parliament will be consulted and the final stage will be the ratification of the association treaty by all EU Member States and Iceland.

In the conclusions, the Council also emphasises its support for the countries in the Western Balkans. The Council will return to the Albanian membership application after the conclusion of the country’s post-election process. The Albanian parliamentary elections were held on 28 June.

The ministers for foreign affairs also decided to extend the mandate of the EU’s mission in Georgia (EUMM), until September 2010.