BRUSSELS, Feb 24 (Reuters) - The European Union's executive recommended on Wednesday launching accession talks with Iceland, the start of a process that Reykjavik hopes will lead to EU membership by 2012.
The European Commission said Iceland met many of the EU criteria on democracy and human rights but called in a statement for structural reforms, "fiscal consolidation and full implementation of a credible fiscal strategy".
It also identified fisheries, agriculture, rural development and the free movement of capital and financial services as areas where the island in the far north of Europe would have to make serious efforts to join the 27-country bloc.
The recommendation requires the approval of EU member states before accession talks can start. (Reporting by Pete Harrison and Timothy Heritage, editing by Dale Hudson)