Arctic Circle Assembly 2025: Prime Minister of Iceland: “We Better Control What's Happening in Our Own Backyard”

Prime Minister Kristrún Mjöll Frostadóttir (Social Democratic Alliance) came into Icelandic politics only four years ago, when foreign policy was not a big part of the dialogue.

That quickly changed, she shares with the public from the stage at the Arctic Circle Assembly in Reykjavik.

“It obviously carries a lot more responsibility to say something about the Arctic than three or four years ago, and this has been a lot more eventful than I ever could have imagined.”

A grey zone

She says it is hard for the public to know what is really happening to multilateralism and international affairs.

“There are insecurities building up, and we're sort of living in a gray zone. Even when we see positive changes, we worry that they might have negative connotations.”

“That makes me feel more responsible for us in Iceland to control what happens here. The biggest lesson I've learned over the past nine months is that there's so much going on both sides of us that we better control what's happening in our own region, in our own backyard.”

Solid US relationship

When it comes to history, small Arctic countries have often been overlooked and controlled. Frostadottir will have none of that in her government.

“History has somewhat been that we've had countries that haven't been physically living in the region, controlling it. And so, we have to be more hands-on. That's why my government is looking actively at security, investment opportunities and how we can strategically place ourselves and strengthen the hub that Iceland has always been. We can't just sit back and say, we want this to be a risk-free, neutral zone, and whatever happens, happens. So, it's pushed us to be more responsible.”

Like the rest of the Arctic region, Donald Trump’s presidency affects Iceland’s politics. But Frostadóttir makes it clear that the Iceland-US relationship is solid.

“We've always had relationships with countries where we haven't agreed on everything in their foreign policy. It doesn't mean you stop interacting with them. Iceland has always had a great relationship with the U.S., and will continue to have that. Our security is based on a bilateral defense agreement with the U.S., and I see a lot of opportunities deepening that relationship.”

Still open

In saying that, the Prime Minister also emphasized the close relationship with Greenland.

“We share geography, history and not having been in full control of everything that's happened in the country. We understand fully what kind of feeling that comes with hearing people from powerful countries making statements like the President of the U.S. did. And the future of Greenland is in the hands of Greenlanders”, she states.

She adds that the region is still open to communication, business and investment from the U.S. Just on their own terms.

Strengthen security

“We need to build further alliances, strengthen the West Nordic cooperation and the cooperation between Iceland, Greenland, the Faroes, Canada, U.S., Norway, Denmark, this whole region.”

“We need to be more active in security, infrastructure, obviously research, climate. If we don't do it ourselves, someone else does it.”

Iceland does not, and has never had its own military, but depends on NATO for defense support. Now, there is talk about an Icelandic military. Is there any truth to that? 

“There's a lot of talk, but it's not based on government focus or planning. I can't speak for the entire Icelandic nation, but I think everyone is very happy with the current state of affairs when it comes to our presence and security, and the government is as well”, the Prime Minister says, and elaborates:

“When we say we need to step up in security, it means stepping up in what our strengths are. I think we could do much more with funding, whether it is through our NATO or other infrastructure funding, by strengthening our position as a strategic hub, as a host nation, rather than building a whole economy in a country of 400,000 people around the military.”

“When I have those conversations with other states, they are aware of that. So, when we talk about strengthening security here, even strengthening defense, it doesn't mean bringing in a military. It won't all be in my hands, but I don't think we'll see a military here, Icelandic military, in my lifetime."

Greenland – a NATO issue?

On the question of whether she thinks that the American president's wish for control over Greenland is a matter for NATO, she says no. At least not yet.

“I don't think we're at that stage. I do, however, think it's important that international leaders speak up when these comments are made.”

Frostadottir also thinks that the people of the Nordics have been naïve in the face of the Russian aggressor.

“We may have been a bit naïve about this region for some years. We want it to be a low-tension zone. But we also wanted Europe to be a low-tension zone. And we see what's happening in Ukraine. There are powers out there who are looking at the world in a different way than we are. But Russia is interested in the Arctic as well. So, this is a push for us to step up in building alliances, infrastructure, and strategic security matters.”

Draw the line

Frostadottir emphasizes the importance of drawing a clear line with Russia.

“Dialogue is important, and you need to keep the communication lines open, but principles are also important, and you need to draw the line somewhere. Obviously, Russia is a big player in the Arctic, but we need to send a clear message that what's happening when it comes to international borders, law, and developments in Ukraine and in Europe are not okay, and there are lessons to be learned from that.”

So far, she wants to keep Russia at arm’s length.

“We need to see what the developments will be in Ukraine before we bring Russia to the table. I think Iceland has a very big part to play in the transatlantic relationship. We might be living in a gray zone, and a lot of the criticism that's been coming up around multilateralism is because people don't feel engaged and involved, they don't feel a part of what's been going on in the international order, and that we all need to listen to.”

She pauses.

“So maybe this is an opportunity for having different kinds of communication, and Iceland could definitely be a hub for that.”