Geopolitics and Security in the High North: An Icelandic Perspective.

Iceland is the smallest sovereign state in the Arctic. It chooses to go by the Arctic Councils definition of Arctic boundaries; which places the island as the only state fully within the Arctic territory. During the Cold War, and up to 2006, Iceland benefitted from having the US army base, not the least financially. After the army left there have been drastic changes in Iceland. The oversized banking system crashed leading to increased instability, not the least politically. The political system and small administration are under a lot of pressure, focusing on the most prominent issues like Iceland’s application to the European Union and dealing with the problems at home. Ergo, there are less recourse left to focus on other issues, that seem less calling at the moment, as the Foreign Service has suffered severe cutback. However, the Arctic is not being ignored. Indeed it has been optimistically spoken of in terms of financial gain and given a priority status, policy wise. Yet, it has not been a major focus point, not even related to challenges or opportunities regarding the EU application. A new policy is in the making where Arctic peace and stability are emphasized. Nonetheless, Iceland sets the goal to gain increased influence in the Arctic. It will be argued that as a small state with no military, and limited financial recourses after the economical crash in 2008, Iceland needs cooperation and a strong institutional focus in order to secure its interests and influence in the High North.