Iceland is considering joining the European Union, which would have various impacts on its economy. Currently, Iceland is part of the European Economic Area, allowing for free movement of capital, people, services, and goods with the EU. However, Iceland does not participate in certain EU policies like the Common Fisheries Policy or the Common Agricultural Policy. The decision to join the EU involves weighing the benefits and drawbacks, such as access to the European Monetary Union. Ultimately, the choice to join the EU is a political decision that requires careful consideration of the potential effects on Iceland's economy.