Icelandic voters reject proposal to restart negotiations to join European Union

In a referendum on Saturday, Iceland's voters decisively rejected restarting negotiations to join the European Union, with 52.8% voting against the proposal and 47.2% in favor, according to the National Electoral Commission. The result, which put the contentious issue to rest for now, occurred more than a decade after a Eurosceptic government ended EU talks that had begun following the 2008 financial crisis.

The vote took place amidst threats from US President Donald Trump to take control of nearby Greenland, with supporters arguing that European solidarity would offer greater protection. Iceland, a NATO member, saw the referendum as an opportunity to maintain national control over its prized fisheries, a key aspect of its national identity.

Prime Minister Kristrun Frostadottir, who had moved up the referendum after the Trump incident, did not view the loss as a setback but as a victory for democracy, as over 82% of the eligible 270,000 voters participated. Despite the defeat, the opposition Independence Party leader, Gudrun Hafsteinsdottir, emphasized that the government would respect the result and not rule out future attempts to reopen the issue, stating that significant changes would need to occur within two years for the topic to become a priority again.

While the fishing industry opposed the referendum due to concerns over EU fishing policies, Iceland's history of resisting domination by larger nations, including the successful Cod Wars against Britain, fueled opposition. Critics also pointed out that Iceland already enjoys many benefits from the EU's single market and Schengen zone without the sovereignty compromises of full membership.

Backers of EU membership argued that it could lower inflation and interest rates, stabilize the krona, and enable closer cooperation on global issues like climate change. Should the proposal have been approved, it would have been a preliminary step towards reviving the EU's lengthy negotiation process, with voters needing to approve any negotiated deals.

The outcome is expected to disappoint many EU members, as Iceland's wealth, stability, and democratic system could have facilitated a relatively swift entry process.