Central and Eastern Europe Soviet Union; the independent states in former Yugoslavia (which were not considered part of the Eastern bloc); and the three Baltic states – Estonia, Latvia, Lithuania (which chose not to join the CIS with the other 12 former republics of the USSR). The CEE countries are further subdivided by their accession status to the European Union (EU): the eight first-wave accession countries that joined the EU on 1 May 2004 (Estonia, Latvia, Lithuania, Czech Republic, Slovakia, Poland, Hungary, and Slovenia), the two second-wave accession countries that joined on 1 January 2007 (Romania and Bulgaria) and the third-wave accession country that
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.