Several EU countries possess islands and insular territories. Various EU islands constitute world famous tourist destinations as they are home to considerable natural, heritage and cultural wealth. Certain islands also produce renowned agricultural products and handcrafts. However, islands also face considerable challenges. They struggle for adequate transport links with the nearest mainland. Their ecosystems are vulnerable, and natural resources are often scarce. Some of them are small and mountainous. Many are located on the periphery of a Member State, or constitute border regions, placing considerable limitations on their potential for economic growth. Islands are usually too small to allow economies of scale. They may lack human capital and possess limited public resources in health, education, research and innovation. In most cases, islands are not self-sufficient in agricultural and industrial products or tertiary-sector services. They are usually reliant on imported fossil fuels and dependent on mainland energy networks. As most products and services are transported to islands, prices are usually considerably higher, adding to the cost of living in insular territories. In recent years, the EU's southern islands have seen an influx of migrants, whilst lacking the resources needed for their accommodation and integration. However, although the state of insularity creates many problems, various studies suggest that islands can become 'lands of opportunities' by investing in their relative strengths. Solar, sea and wind energy opportunities can be explored to create sustainable energy communities. Tourism, agriculture and fisheries, as well as the high quality of life that many EU islands offer, in combination with the digitalisation of work bring more opportunities for their growth. Recent geopolitical uncertainties have also elevated the strategic role of islands, as many of them are based in strategic locations and host important military bases. The European Commission has declared that it will present in the near future a strategy on islands and coastal territories, as well as an updated strategy on outermost regions, which include insular territories. Source : © European Union, 2026 - EP Read more