Nordic Council - History

History

During the Second World War Denmark and Norway were occupied by Germany, Finland fought a costly war with the USSR, and Sweden, though neutral, still felt the war's effects. Following the war, the Nordic countries pursued the idea of a Scandinavian defence union to ensure their mutual defence. However Finland, due to its Paasikivi-Kekkonen policy of neutrality and FCMA treaty with the USSR, could not participate. They would unify their foreign policy and defence and remain neutral in the event of a conflict and not ally with NATO, which was being planned at the time. The United States, keen on getting access to bases in Scandinavia and believing the Nordic countries incapable of defending themselves, stated it would not ensure military support for Scandinavia if they did not join NATO. The project collapsed as a result with Denmark, Norway and Iceland joining NATO.

Further Nordic co-operation, such as an economic customs union, also failed. This led then-Danish Prime Minister Hans Hedtoft to propose in 1951 a consultative inter-parliamentary body. This proposal was agreed by Denmark, Iceland, Norway and Sweden in 1952. The Council's first session was held in the Danish Parliament on 13 February 1953 and it elected Hans Hedtoft as its president. When Finnish-Soviet relations thawed following the death of Joseph Stalin Finland joined the council in 1955.

On 2 July 1954 the Nordic labour market was created and in 1958, building upon a 1952 passport-free travel area, the Nordic Passport Union was created. These two measures helped ensure Nordic citizens' free movement around Scandinavia. A Nordic Convention on Social Security was implemented in 1955. There were also plans for a single market but they were abandoned in 1959 shortly before Denmark, Norway and Sweden joined the European Free Trade Area (EFTA). Finland became an associated member of EFTA in 1961 and Denmark and Norway applied to join the European Economic Community (EEC).

This move towards the EEC led to desire for a formal Nordic treaty; the Helsinki Treaty outlined the workings of the Council and came into force on 24 March 1962. Further advancements on Nordic cooperation were made in the following years: a Nordic School of Public Health, a Nordic Cultural Fund and Nordic House in Reykjavík. Then-Danish Prime Minister Hilmar Baunsgaard proposed full economic cooperation in 1968; known as Nordek. Nordek was agreed in 1970 but Finland backtracked stating that due to its ties with the USSR it could not form close economic ties with potential members of the EEC (Denmark and Norway).

Due to the failure of Nordek, Denmark and Norway applied to the EEC and the Nordic Council of Ministers was set up in 1971 to ensure continued Nordic cooperation. In 1970 representatives of the Faroe Islands and Åland were allowed to take part in the Nordic Council as part of the Danish and Finnish delegations. Norway turned down EEC membership in 1972 while Denmark acted as a bridge builder between the EEC and the Nordics. Also in 1973, although Finland did not opt for full membership of the EEC, Finland negotiated a free trade treaty with the EEC that in practice removed customs duties from 1977 on, although there were transition periods up to 1985 for some products. Sweden did not apply due to its non-alliance policy, which was aimed at preserving neutrality. Greenland subsequently left the EEC and has since sought a more active role in circumpolar affairs.

In the 1970s the Nordic Council founded the Nordic Industrial Fund, Nordtest and Nordic Investment Bank. the Council's remit was expanded to environmental protection; in order to clean up the pollution in the Baltic Sea and North Atlantic, and a joint energy network was established. The Nordic Science Policy Council was set up in 1983 and in 1984 representatives from Greenland were allowed to join the Danish delegation.

Following the fall of the USSR in 1991 the Nordic Council began to cooperate more with the Baltic States and new Baltic Sea organisations. It also led to Sweden and Finland joining the EEC in 1995, which had then become the European Union (EU). Norway had also applied but voted against once again. However Norway and Iceland did join the European Economic Area (EEA) which integrated them economically with the EU. The Nordic Passport Union was also subsumed into the EU's Schengen Area in 1996.

The Nordic Council became more outward looking, to the Arctic, Baltic, Europe and Canada. The Øresund Bridge linking Sweden and Denmark led to a large amount of cross-border travel leading to further efforts to reduce barriers. However the initially envisioned tasks and functions of the Nordic Council have become partially dormant due to the significant overlap with the EU and EEA. Since 2008 Iceland has also sought EU membership.