Iceland on track to reject EU referendum as counting nears end

Iceland has voted in favor of rejecting a proposal to resume membership talks with the European Union, according to public broadcaster RUV, with only one constituency's votes remaining to be counted. The referendum, which saw 52.5% of 188,496 votes cast rejecting the government's proposal and 47.5% supporting it, has highlighted the importance of the fishing industry to the island nation's economy.

Prime Minister Kristrún Frostadóttir's centre-left government had initially promised to hold the referendum by 2027, but brought it forward due to international tensions such as US President Donald Trump's threats against Greenland. However, the debate in Iceland was primarily focused on the fishing industry rather than security concerns.

Iceland is already part of the EU's single market and Schengen border-free zone, but EU membership would involve the country integrating into the customs union and potentially adopting the euro. The referendum question asked whether Iceland should resume accession negotiations with the EU, with a Yes vote being a step towards an agreement, while a No vote would not prevent Iceland from resuming talks in the future.

Economic issues dominated the campaigns, but security concerns also played a role, as Iceland is a NATO founder member with no military and relies on its allies for defense.