Relationship dossier
Iceland
Kingdom of the Netherlands
Relationship assessment
NATO and EEA cooperation alongside a major Icesave dispute
Iceland toward Kingdom of the Netherlands
+10Iceland cooperates with the Netherlands through NATO and the European Economic Area. During the Icesave dispute, Iceland rejected repayment arrangements that would have compensated Dutch depositors in failed Icelandic banks, contributing to bilateral friction.
Kingdom of the Netherlands toward Iceland
+10The Netherlands cooperates with Iceland through NATO and the European Economic Area. It pursued repayment arrangements for Dutch depositors affected by the Icesave failure and brought the dispute before the EFTA Court.
Overall relationship
+15The relationship rests on sustained cooperation through NATO and the European Economic Area, but the Icesave dispute exposed a substantial disagreement over Iceland's obligations to Dutch depositors. The court resolution helped contain that dispute, while the available facts support a mixed but cooperative overall relationship.
How to read these scores
Scores are rough judgments, not objective measurements or current verification. Directional scores describe government policy and conduct, not public opinion. The overall score is an independent estimate, never an average.
- −100
- Extreme sustained hostility
- −50
- Substantially adversarial
- 0
- Mixed or neutral, supported by knowledge
- +50
- Substantially cooperative
- +100
- Exceptionally close sustained partnership
“Not assessed” means there is no recorded score. Pair existence makes no claim about diplomatic recognition or established relations.
Relationship context
Overview
Iceland and the Netherlands cooperate within NATO and the European Economic Area, while the Icesave dispute brought a significant period of bilateral friction. Iceland rejected repayment arrangements sought by the Netherlands and the United Kingdom for Dutch depositors in failed Icelandic banks; the dispute was ultimately addressed through legal proceedings. The relationship combines enduring institutional cooperation with a notable financial disagreement.
Areas of tension
- The Icesave dispute over compensation for Dutch depositors in failed Icelandic banks.
Key developments
Icelandic voters rejected an Icesave repayment agreement in a referendum.
Icelandic voters rejected a revised Icesave repayment agreement in a referendum.
The EFTA Court ruled that Iceland was not liable for the alleged failure to ensure minimum deposit guarantees under the relevant EU directive in the Icesave case.
Major uncertainties
- The extent of recent bilateral cooperation beyond NATO and European Economic Area frameworks is unclear.
- The current practical effects of the Icesave dispute on bilateral relations are unclear.