Icelanders have voted to stay outside the European Union, rejecting a government-backed proposal to reopen membership negotiations and keeping the country’s long-running debate over EU membership unresolved, according to the latest counting figures.
The result is a setback for Prime Minister Kristrún Frostadóttir’s government, which had presented the referendum as a decisive moment for a country weighing closer ties with Europe against control of its fishing waters and national sovereignty.
She had previously told voters in August that a "no" would put all EU speculation aside.
Opponents of EU membership argued that joining the bloc could put Iceland’s control over its lucrative fishing grounds at risk.
Supporters, meanwhile, said EU membership could bring economic benefits, including potentially lower borrowing costs, while strengthening Iceland’s position amid growing geopolitical uncertainty.
The campaign also reflected wider security concerns, with the war in Ukraine, tensions in the Middle East and U.S. President Donald Trump’s comments about Greenland adding urgency to discussions about Iceland’s place in the world.
Iceland first applied to join the EU in 2009, during a severe financial crisis that exposed the vulnerabilities of its small economy. Membership talks were later halted by a Eurosceptic government in 2013.
The government framed the latest referendum as a “now or never” opportunity to settle the issue.
After casting her ballot in Reykjavík on Saturday, Frostadóttir said the vote was an important moment for the country.
“This is a great day. We've been waiting for this for years to be able to have a vote,” she said.
The result is also likely to disappoint Brussels, where some officials had viewed Iceland as a relatively straightforward potential addition to the bloc at a time when EU enlargement and Arctic security are receiving greater attention.
For now, Iceland remains outside the EU, continuing its existing relationship with the bloc through the European Economic Area and other agreements.
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