The crossword solution for the term 'MOST SPARSELY POPULATED EUR. COUNTRY' is ICEL, which stands for Iceland. Iceland is a Nordic island country located in the North Atlantic Ocean, just south of the Arctic Circle. It is the most sparsely populated European country, with a population density of only three people per square kilometer. Iceland is known for its dramatic landscape, which includes volcanoes, geysers, hot springs, and glaciers.