Icelanders have rejected a proposal to resume negotiations on joining the European Union, dealing a setback to Brussels’ efforts to bring the wealthy North Atlantic country into the bloc

Icelanders have rejected a proposal to resume negotiations on joining the European Union, dealing a setback to Brussels’ efforts to bring the wealthy North Atlantic country into the bloc.

In Saturday’s referendum, 52.8 per cent of voters opposed restarting EU accession talks, while 47.2 per cent backed the proposal, according to the final results published by Iceland’s public broadcaster RUV.

The result is expected to put the EU membership question on hold in Iceland until at least 2028. Although the referendum is technically non-binding, Prime Minister Kristrun Frostadottir’s government has said it will respect the verdict.

Why Iceland voted ‘No’

Iceland applied to join the EU following the country’s 2009 financial crisis, which severely damaged its economy. However, accession talks were suspended in 2013 after a Eurosceptic government came to power.

The current government, led by Social Democratic Prime Minister Frostadottir, had supported reopening negotiations amid growing geopolitical tensions. The campaign also brought renewed debate about Iceland’s place in Europe and its wider role in international affairs.

Iceland is already closely connected to the EU. It is part of the European Economic Area and the Schengen free-movement zone, arrangements that will remain unchanged after the referendum.

Frostadottir had campaigned for a “Yes” vote but said Iceland would be able to move forward regardless of the outcome.

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“We will be fine also if it’s a ‘No’,” she said after casting her ballot.

She had also pledged that if voters rejected the proposal, the EU issue would not return to the political agenda during her term, which runs until 2028.

Fishing emerges as major obstacle

One of the biggest concerns surrounding EU membership has been Iceland’s fishing industry, a crucial part of the country’s economy and national identity.

Iceland has long insisted on maintaining control over its fishing resources, while the industry has strongly opposed joining the bloc. Around 90 per cent of companies in the sector were against EU membership, according to the information cited by AFP.

The European Union had attempted to address these concerns ahead of the vote. EU Enlargement Commissioner Marta Kos said Brussels recognised Iceland’s specific circumstances, particularly regarding fisheries and agriculture, and expressed confidence that compromises could be found.

Setback for Brussels’ wider ambitions

The rejection is also a setback for the EU’s broader enlargement plans.

Brussels had hoped Iceland could become an example of successful EU expansion and help build support for admitting other candidate countries, including poorer nations such as Montenegro.

Iceland’s membership would also have strengthened the EU’s presence in the strategically important Arctic region. It could potentially have influenced debate in neighbouring Norway, another wealthy Nordic country that remains outside the bloc.

The referendum also took place against a backdrop of wider geopolitical tensions, including the war in Ukraine and US President Donald Trump’s interest in Greenland.

Iceland’s government is now expected to decide how to proceed with its existing EU application. It had previously said Parliament could determine whether the country should formally withdraw the application following a “No” vote.