Integration of Nordic countries to the European Economic and Monetary Union

ABSTRACT Since the 1950s, the economic relations between European countries are undergoing major changes with the formation of European Union. Only three of the five Nordic countries joined the European Union while Norway and Iceland so far remained as outsiders. In this context, this study tries to investigate why the majority of the Nordic countries remained outside the European Union until 1995 and why Sweden and Denmark is not a member of the Economic and Monetary Union while Finland is. For that purpose, this study intends to examine the evaluation of the relationship between the Nordic countries and the European Union. In the first part of the study, Nordic region is defined and also the origins and the development of cooperation attempts among the Nordic countries are studied from a historical perspective. In the second part of the study, economic performances of five Nordic countries- Denmark, Sweden, Finland, Norway and Iceland- have been analysed with a special reference to their leading economic sectors and foreign trade. In the third part of the study, the accession process of the Nordic countries to the European Union and the phases of the accession negotiations have been discussed. The last part of the study concentrates on the European Monetary Union and the European Monetary Union membership of the Nordic countries. Keywords: European Union, Nordic countries, economic integration, European Economic Area, European Free Trade Area, European Monetary Union