On April, 4 the government of Iceland adopted the law draft on clearing its labour market to the citizens of Hungary, Estonia, Latvia, Lithuania, Poland, Slovakia, Slovenia and Czech Republic from May, 1 2006.

The document was introduced by the Ministry of Social Affairs, which is to found a committee to survey the consequences of the measure. The foremost concern of the committee would be to tackle wages dumping. It is planned that in October, 2006 the committee will submit a report on the issue to the government of the country.

Though this northern island has not entered the EU, Iceland is a part of European Economic Community along with Norway, Liechtenstein and EU member-states. Thus, Iceland embraces the majority of EU directives, including those dealing with the free move of people, goods and services. EU enlargement meant the enlargement of EEC, although resolving the issue of regulating free move of labour force from Central European countries were to be suspended for 2 years.

On arriving in Iceland and finding a job there, the citizens of the newly-adopted EU member-states are to be included into a register of foreign nationals from the states mentioned above who enter Iceland for employment purposes and receive a residence permit. The provision touches upon those who intend to stay in Iceland for more than three months.

Foreigners are mostly employed in fish industry, shipbuilding, building industry and tourism. Poles constitute the largest diaspora of the country, amounting to 7 thousand people.