GETTY/ BLOOMBERG Iceland President Olafur Ragnar Grimsson has suggested a post-Brexit Nordic alliance

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After knocking England out of the Euros, Iceland is now keen to join forces to create a new union. President of Iceland Olafur Ragnar Grimsson said Brexit “is the most serious setback the leadership of the EU has seen for along time” as he called for a new alliance. In an interview with Icelandic news site mbl.is, Mr Grimmsson said: “First of all, it is now obvious that here in the North Atlantic will be a triangle of nations that all stand outside of the European Union: Greenland, Iceland, Great Britain, Faroe Islands and Norway.

This key area in the North will be outside of the influence of the European Union Olafur Ragnar Grimsson

“This key area in the North will be outside of the influence of the European Union.” Iceland and Norway are part of the European Economic Area (EEA) and are allowed in the EU’s single market. Mr Grimmsson said Iceland’s role in the EEA will take on a new significance when talks for Brexit take place.

He said: “Iceland and Norway will now, in a totally new way, become participants in negotiations that must take place between the EU and the United Kingdom, and the EU and member states of the EEA with this new triangle of countries in the North Atlantic. “Our significance with regards to relations with our neighbours as well as the member states of the EU has undergone positive changes.” In an ambitious statement Mr Grimmsson said Brexit will lead to a stronger relationship between nations in the North Atlantic outside the EU and the US and Canada.

GETTY Ken Clarke suggested the possibility of a Nordic alliance before the referendum

He said: “It is enlightening for anyone to look at a map or a globe and study this part of the world, the magnificent Greenland, the North Atlantic, Iceland, Norway, and then south to the British Isles. “And then consider, with regards to trade and international affairs between the United States and Europe, and Asia and Europe, the key position this area will enjoy in the 21st century.” Tory grandee Ken Clarke suggested the possibility of a Nordic alliance before the historic vote on June 23.

BLOOMBERG President Obama met with Nordic leaders in May this year

BLOOMBERG Norway’s Prime Minister Erna Solberg says the UK could struggle to become a member of the EEA

The former chancellor, who was against the referendum, said: “Would you agree that as a risk of uncertainty for a few months causing very considerable difficulty, would you consider the possible first step of joining the EEA which was designed in the first place for countries like Norway and Iceland where the great bulk of politicians wish to join the European Union but could not get past the ridiculous hurdle of a referendum in order to get there?"

Brexit: What happens next Fri, June 24, 2016 After yesterday's referendum, here is a look at what will happen immediately following the historic vote for Britain to leave the EU. Play slideshow AFP/Getty Images 1 of 14 Brexit: What to expect next