Icelanders have voted to remain outside the European Union, according to broadcaster RUV on Sunday. The vote rejected a government effort to reopen EU membership negotiations, aligning with those who believe Iceland’s fishing waters are too crucial to risk.
Although some votes are still pending from one constituency, they were not expected to alter the overall result. A rejection would disappoint officials in Brussels, as some considered Iceland a low-risk candidate that could help alleviate skepticism about EU expansion and bolster the bloc’s strategic stance amid rising Arctic security concerns.
The government had portrayed joining the EU as a safeguard against trade conflicts and Arctic tensions, emphasizing a moment of urgency with a “now or never” approach. Prime Minister Kristrun Frostadottir warned that a “no” vote would set aside the question of membership for the foreseeable future. A government press conference is scheduled for 1 p.m. (1300 GMT).
Decades-long discussion over membership
Iceland first sought EU membership in 2009 during a financial crisis that severely impacted its small economy. Negotiations halted in 2013 under a government skeptical of EU accession.
Recent geopolitical instability—such as conflicts in the Middle East and U.S. tariffs—has renewed interest in whether Iceland should join the bloc. Proponents of joining argue it could lower interest rates and provide more security amid global uncertainties like the Ukraine war and threats to Arctic territory, including remarks from then-U.S. President Donald Trump about Greenland.
Opponents believe EU membership could undermine Iceland’s sovereignty and fishing rights. The referendum has sparked a national debate about the country’s place on the world stage. After voting in the capital on Saturday, Prime Minister Frostadottir expressed relief that Iceland finally has the chance to weigh in. She added her government will proceed with its plans regardless of the voting outcome.
Economic concerns: interest rates and cost of living
Discussions have largely centered around interest rates, fishing rights, and living costs rather than security. Iceland is battling high inflation and mortgage rates, which have made borrowing expensive. Supporters of joining the EU—and possibly adopting the euro—say it could help stabilize the economy. Currently, Iceland’s central bank interest rate stands at 8%, compared to 2.25% set by the European Central Bank.
Economist Vilhjalmur Hilmarsson from the largest labor union, Viska, noted that while EU membership wouldn’t resolve all of Iceland’s structural issues, it could serve as a catalyst for a healthier economy. Meanwhile, opposition leader Gudrun Hafsteinsdottir challenged this, asserting that Icelandese politicians need to address these problems independently rather than rely on the EU.
Voter Ragnhildur Skarphedinsdottir, 70, emphasized Iceland’s ability to stand on its own. Before casting her ballot in Reykjavik, she stated, “Staying independent gives us a bright future.”
Under EU regulations, fishing quotas are based on historical fishing activity, which some officials believe would allow Iceland to retain control over its waters, since no EU countries have fished there in recent decades. Hafsteinsdottir, however, disagreed, warning that despite promises of flexibility from the EU, deeper commitments could threaten Iceland’s sovereignty over its fishing grounds.














