The effects of Europeanization on national administrations are widely discussed in the literature (Blichner et al. 1993; Bulmer et al. 1998; Egeberg et al. 1999; Trondal 1998; Lœgreid 2000). Involvement of countries in European integration is said to influence the day-to-day operations of their national administrations and institutional structures (Lœgreid 2000: 29). It is argued that national administrations become Europeanized as European integration becomes more relevant and influences changes in domestic institutions and administrative arrangements (Olsen 1996; Hanf et al. 1998; Sverdrup 2000). The main research focus has been on how domestic institutions have adjusted to European integration (Knill 2001). Little attention has been given to the impact national administrations have on states' policy on European integration. National administrations are usually treated as a dependent variable influenced by the process of European integration. This chapter seeks to analyse what influence a small administration may have on a state's response to European integration. The national administration will be seen as an independent variable in order to examine whether its size and characteristics have influenced Iceland's policy on European integration.