Icelanders have voted against reopening negotiations to join the European Union, rejecting a government-backed proposal and choosing instead to protect the country’s fishing interests.
In Saturday’s referendum, 52.8% of voters opposed the proposal to resume membership talks with Brussels, while 47.2% supported it. Turnout reached 82.5% of eligible voters.
The result came as a surprise after Iceland had been expected to narrowly support reopening negotiations. However, opinion polls conducted earlier this month showed growing opposition, particularly over concerns about losing control of the country’s valuable fishing waters.
Prime Minister Kristrun Frostadottir said the government would now focus on strengthening Iceland’s existing relationship with the EU through the European Economic Area (EEA) agreement, which the country shares with Norway and Liechtenstein.
“A big lesson for me and also for the government is that people are happy with the EEA agreement,” she said at a press conference.
The European Commission said it respected the decision of Icelandic voters and stressed that the country remained a close partner of the EU.
The referendum revealed a clear geographical divide. Only two of Reykjavik’s six constituencies recorded majority support for reopening EU negotiations, while rural communities and suburbs of the capital largely voted against the proposal.
The government had argued that closer ties with the EU could help Iceland navigate trade disputes and growing strategic competition in the Arctic. The referendum was also presented as a crucial moment for the country’s future relationship with the bloc.
However, opponents maintained that Iceland’s fishing industry and national independence were more important considerations. The sector contributes around 15% of the country’s gross domestic product through direct and indirect activity and accounts for roughly 40% of export revenue.
Iceland, a NATO member without a standing army, had also debated whether joining the EU could strengthen its security position amid growing tensions in the Arctic and uncertainty over the United States’ long-term commitment to NATO.
The EU referendum debate has been ongoing for years. Iceland first applied for membership in 2009 following a major financial crisis, but negotiations were halted in 2013 after a Eurosceptic government came to power.
Economic concerns again featured heavily in the latest campaign, with Iceland continuing to grapple with high inflation and elevated interest rates. The Central Bank of Iceland’s interest rate currently stands at 8%, compared with 2.25% at the European Central Bank.
Supporters of EU membership argued that closer integration with the bloc, potentially including adoption of the euro, could help ease economic pressures. However, opponents said Iceland’s economic challenges should be addressed domestically rather than relying on Brussels.
Another major point of contention was fishing rights. While EU rules determine fishing quotas based partly on historical fishing patterns, some Icelandic officials have argued that the country could retain control over its waters because other EU nations have not fished there for decades.
Opposition leader Gudrun Hafsteinsdottir, who led the “no” campaign, rejected such assurances, arguing that any flexibility offered by the EU would not necessarily be permanent.
The referendum result is expected to put Iceland’s EU membership debate on hold, with Frostadottir saying the issue would remain off the political agenda for as long as her centre-left coalition remains in government.
