Contrary to popular opinion, Iceland’s August 2013 decision to suspend negotiations on EU membership is no blow to the credibility of enlargement policy. Iceland, like Norway and Switzerland, is already closely tied to the EU, and it opened negotiations in a bid to create economic stability. This has largely been achieved, with the negotiations permitting a recalibration of bilateral relations. Nevertheless, the episode does point to the EU’s failure to secure its strategic interests. It should therefore “complete” the new relationship through political partnerships in fisheries and in the Arctic.