Brussels - The European Union is ready to look at a bid from Iceland to join the bloc, the EU's top enlargement official said in Brussels on Thursday.

The European Commission, the EU's executive, is "mentally prepared" for a membership proposal from Iceland early in 2009, and negotiations could be swift because the island state already has such close ties with Europe, EU Enlargement Commissioner Olli Rehn said.

However, it is up to the Icelandic people to decide when and if they want to join the 27-member bloc, he stressed. Iceland has been particularly hard hit by the current financial crisis, triggering a wave of calls for the country to join the EU.

Analysts have said that membership of the EU and its common currency, the euro, would have sheltered Iceland from the worst of the financial shock.

Iceland is already a member of the European Free Trade Association (EFTA) and the Schengen passport-free zone, meaning that many of its laws are already in line with EU norms. It is also a member of NATO. (dpa)