Iceland’s bid to join the European Union, being accepted today at a meeting of EU foreign ministers, is likely to be the start of a speedy rate of accession. The country only officially submitted its application to join the bloc last week, but if the European Commission completes its analysis within a few months, Iceland could begin accession talks next year and enter the EU in 2011/2012.

The speed would be in contrast to the progress of some Balkan countries – Albania submitted its EU application in April but is still waiting for EU states to refer its papers to the commission. Montenegro has been waiting since December.

But the island nation has been part of the European Economic Area for 15 years. Within the Schengen area (the EU’s passport-free travel zone), it has a GDP per capita higher than all EU states, except Luxembourg.

Iceland’s economy is recovering quickly following the collapse of the country’s banks last year, which prompted the EU application. Unemployment is below the eurozone average of 9.5 per cent, GDP is likely to contract less this year than in some EU states such as Ireland, trade is up and the government surplus is shrinking.