Iceland and Germany Formalize Enhanced Defense Cooperation Amidst Arctic Security Concerns

Historic Agreement Signed in Reykjavík

On October 19, 2025, Iceland and Germany officially deepened their security relationship by signing a bilateral declaration of intent on defense cooperation in Reykjavík. The memorandum of understanding was signed by Icelandic Foreign Minister Þorgerður Katrín Gunnarsdóttir and German Defence Minister Boris Pistorius. This agreement aims to strengthen surveillance and security across the North Atlantic and enhance the collective defense capabilities of NATO members.

Expanded Areas of Collaboration

The newly signed agreement outlines several key areas for enhanced cooperation between the two nations. These include:

• Development of defense policy
• Joint work on cybersecurity and defense technology
• Procurement of technical equipment
• Collaboration on training and exercises
• Increased coordination between security agencies

Beyond these, the pact specifically emphasizes cooperation in maritime logistics, air and maritime surveillance, and the protection of critical infrastructure, including cyber defense.

Germany's Increased Presence in the Arctic

As part of this expanded cooperation, Germany intends to increase its military presence in Iceland. Plans include the stationing of German reconnaissance aircraft, with the P-8A Poseidon maritime patrol aircraft being considered for deployment. The Bundeswehr will also make wider use of Iceland's modern port infrastructure and logistics for its frigates, submarines, and auxiliaries, leveraging Keflavík Air Base for long-range patrols. This initiative is set to transform Iceland from an episodic stopover into a routine German operating hub in the far north, thereby tightening NATO's surveillance network.

Strategic Response to Geopolitical Shifts

The agreement comes as a direct response to rising risks to maritime infrastructure and increased Russian activity in the Arctic and North Atlantic regions. Minister Pistorius stated that the agreement is necessary 'against the backdrop of Russian threats,' emphasizing Germany's need to 'strengthen' its military presence with NATO partner Iceland. Foreign Minister Gunnarsdóttir highlighted that the agreement reinforces Iceland's core pillars of defense and security, namely its membership in NATO and its defense cooperation with the United States. She further remarked, 'Germany is, from my point of view, the leading force now in strengthening the security and defence of Europe.' Iceland, a founding NATO member without standing armed forces, holds a crucial strategic geographic position as an essential waypoint and sensor node across the North Atlantic and into the Arctic approaches.