Enlargement of the European Union and "morally imperative", which reflected the desire of the EU to admit these countries as members, even though they were less developed than the Western European countries. Following this Romania and Bulgaria, though were deemed initially as not fully ready by the Commission to join in 2004, acceded nevertheless on 1 January 2007. These, like the countries joining in 2004, faced a series of restrictions as to their citizens not fully enjoying working rights on the territory of some of the older EU members. Bulgaria and Romania are not yet members of the Schengen area; however, their citizens can travel
Iceland–European Union relations any of the convergence criteria. One year later, the country managed to comply with the deficit criteria and had begun to decrease their debt-to-GDP ratio, but still suffered from elevated HICP inflation and long-term governmental interest rates. Academics have proposed several explanations for why Iceland has not joined the European Union: Economic relations between Iceland and the European Union are primarily governed by two agreements: a bilateral free trade agreement signed in 1972, and the agreement on the EEA in 1994. The EEA was established to give Iceland, among other European countries outside the EU, access to the EU market.