Icelanders have decided to remain outside the European Union, according to the results of a recent referendum. The outcome showed a rejection of government efforts to resume discussions about EU membership, with a focus on preserving Iceland’s vital fishing grounds.
With a population of 400,000, the Arctic nation has been deliberating joining the EU for more than ten years. Initially anticipated to lean towards opening membership negotiations, recent polling indicated a shift in public opinion.
In the referendum held on Saturday, 52.8% of votes opposed the government’s proposal to engage in talks with Brussels, while 47.2% were in favor. Notably, 82.5% of eligible voters participated in the referendum, as reported by public broadcaster RUV and other local media outlets.
Among the six constituencies, only central Reykjavik showed a majority in support, while rural areas and suburbs of Reykjavik predominantly voted against the proposal.
The government positioned EU membership as a safeguard against trade conflicts and Arctic disputes, emphasizing the referendum as a crucial decision. Prime Minister Kristrun Frostadottir stated that a negative outcome would halt the debate for the duration of her current center-left coalition’s term.
In Brussels, optimism existed that Iceland’s potential accession could improve perceptions of EU expansion and enhance the bloc’s strategic position amid Arctic security concerns. Additionally, discussions in Iceland included considerations about whether EU membership could enhance the country’s defense capabilities, particularly as U.S. President Donald Trump had questioned American commitments to NATO and expressed interest in acquiring Greenland.
Nevertheless, for many Icelanders, the primary concern was the impact on the fishing industry. Fishing plays a significant role in Iceland’s economy, contributing 15% to the GDP and accounting for around 40% of export earnings.
The issue of interest rates and living costs also featured prominently in the debate. With Iceland experiencing high inflation and interest rates, proponents of EU membership believed adopting the euro could offer economic relief. Currently, Iceland’s central bank interest rate stands at eight percent, significantly higher than the European Central Bank’s rate of 2.25 percent.
While some advocated for EU integration as a potential economic catalyst, others, like opposition leader Gudrun Hafsteinsdottir, argued that Iceland’s challenges required local solutions rather than relying on Brussels. Notably, voter Ragnhildur Skarphedinsdottir, aged 70, expressed confidence in Iceland’s independence and voted against EU membership.
Under EU regulations, fishing quotas are determined based on historical fishing practices and other factors. Icelandic officials have reassured that the country would retain control over its waters, given that no EU member state has fished in Icelandic waters for decades. However, opponents like Hafsteinsdottir raised doubts about the EU’s long-term intentions regarding fishing rights.