East German hurried to keep Iceland excluded (10)
I believe the answer is:
ostracised
'excluded' is the definition.
(ostracising is a kind of excluding)
'east german hurried to keep iceland' is the wordplay.
'east german' becomes 'ost' ('east' in German).
'hurried' becomes 'raced' ('race' can be a synonym of 'hurry').
'to keep' is an insertion indicator.
'iceland' becomes 'is'.
'raced' enclosing 'is' is 'racised'.
'ost'+'racised'='OSTRACISED'
(Other definitions for ostracised that I've seen before include "shunned" , "Sent to Coventry" , "banished?" , "excluded from society" , "out in the cold" .)