Until 1944 the Iceland denmark relations was that of a ruler and the ruled. Now both these countries are members of an association of the Nordic countries. Norway is also a part of this association. Till 1944 Denmark was the official ruler of Iceland but it had given Iceland the sovereignty of self rule long back in 1874. Iceland and Denmark shared the same royal family as the head of their states. Foreign affairs and the defense sector of Iceland were under full control of Denmark though the residents of Iceland had created their own flag. Thus it is pretty clear that Denmark denied complete freedom to Iceland. The effect of the Second World War was mainly responsible for the decline of communication between Denmark and Iceland. It was finally through international effort and a plebiscite that Iceland and Denmark was formally separated.
In spite of minor disputes, Denmark and Iceland share a good relationship. Both these countries had decided not to join the European Union and remain an integral part of the association of Nordic countries. The only point on which there is never ending dispute between Denmark and Iceland is Rock all continental shelf. Denmark supports Faroe Island regarding the dispute on authority over this area and projects Faroe Island as its legitimate ruler. However Iceland and United Kingdom is against it. Now days apart from diplomatic relations Iceland shares a deep economic relation with Denmark. Both are working hand in hand for the development of the Nordic countries.
