In Iceland, the prospect of joining the EU generates little enthusiasm ahead of referendum

Iceland is set to hold a crucial referendum on Saturday, determining whether to resume negotiations towards European Union membership. This comes after two decades of debate, with the latest push sparked by increasing geopolitical tensions, particularly the Russian invasion of Ukraine and President Donald Trump's stance on Greenland. The referendum, described as too close to call, will ask voters a simple yes/no question: Should Iceland resume accession negotiations with the European Union?

The Icelandic government, a left-leaning coalition elected in 2024, initially planned to hold the vote in 2025 but accelerated it due to the growing concerns over international stability. The question stems from a previous attempt in 2009 during the global financial crisis, which was ultimately abandoned. With a narrow majority of Icelanders opposed to reopening talks according to a recent Gallup poll, the outcome remains uncertain.

Iceland, with a population of approximately 400,000, is already closely linked to the EU through membership in the European Economic Area (EEA) and the Schengen Area. However, the country has never been an official member. Recent polls show a narrow lead for the 'yes' vote, reflecting growing concerns among voters, including Hildur Knutsdottir, a horror fiction writer who plans to vote in favor of EU membership.

The left-leaning Icelandic government believes EU membership could bolster national security and prosperity, countering the potential influence of the United States under President Trump. Foreign Minister Thorgerdur Gunnarsdottir emphasized the need for small nations to carefully consider their alliances in these turbulent times. The government is open to negotiating an opt-out from the EU's common fisheries policy, a significant point of contention.

While some economists suggest EU membership could financially benefit Iceland, particularly during periods of high inflation and interest rates, others argue that the country values its sovereignty and does not wish to transfer additional power to the EU. The referendum's outcome will trigger a 18 to 24-month negotiation process, covering various areas from the economy to human rights.