Iceland holds knife-edge referendum on EU - and it could be decided on fish

Iceland's voters will decide on Saturday whether their country should re-enter negotiations for joining the European Union. The referendum is viewed as too close to call by polls. Proponents argue that EU membership could stabilize Iceland's volatile currency and help address the country's high living costs. Critics, however, warn that EU membership would jeopardize Iceland's sovereignty and control of its valuable fishing waters, which make up nearly 40% of the nation's exports.

The issue has been a contentious one for decades, but it has gained renewed urgency in recent years due to geopolitical shifts, such as Russia's actions in Ukraine and US President Donald Trump's threats against Greenland. Iceland's center-left government, led by Prime Minister Kristín Þorsteinsdóttir, has pledged to hold a referendum by 2027, although a final decision on membership would require approval from the EU's 27 member states.