Iceland votes to reject EU accession talks: What happens next? | Explainer News

EXPLAINER

With nearly all votes counted, the ‘no’ facet was forward by 52.5 % to 47.5 %, the nationwide broadcaster says.

Voters in Iceland have rejected a proposal to renew negotiations on becoming a member of the European Union, dealing a setback to the federal government’s push for nearer ties with the 27-country bloc.

With nearly all votes counted, the “no” facet was forward by 52.5 % to 47.5 %, in keeping with nationwide broadcaster RUV. Official outcomes haven’t been introduced but.

The outcome just isn’t a vote on EU membership itself, however on whether or not Iceland ought to reopen accession negotiations that have been suspended greater than a decade in the past.

The federal government had argued that renewed talks may assist Iceland confront rising financial and geopolitical pressures, together with tensions over Arctic safety.

Opponents of accession as a substitute targeted on defending Iceland’s fishing waters and normal sovereignty-related points that will come up if the nation grew to become a part of the bloc.

Here’s what it is advisable know:

What was the vote about?

The referendum requested Icelanders a easy query: Ought to Iceland resume accession negotiations with the European Union?

It was not a vote on whether or not Iceland ought to really be a part of the EU. A “sure” outcome would have allowed the federal government to restart negotiations with Brussels. Any eventual settlement on membership would then have been put to voters in one other referendum.

In 2009, Iceland utilized to hitch the EU, following a monetary disaster that severely affected its economic system. Negotiations have been suspended in 2013 after a eurosceptic authorities got here to energy.

Technically, the referendum result’s nonbinding, however the coalition authorities headed by Social Democratic Prime Minister Kristrun Frostadottir has vowed to respect the outcome.

What was the results of the vote?

The “no” facet received, in keeping with RUV, with 52.5 % in opposition to 47.5 % for “sure”. Some votes from one constituency have been nonetheless pending, however they weren’t anticipated to alter the outcome.

The result represents a setback for Frostadottir’s authorities, which had introduced the referendum as a “now or by no means” second for the EU debate.

What’s the controversy in Iceland on becoming a member of the EU?

The talk has largely centred on the economic system, fishing rights and the price of dwelling.

Crucial argument put ahead by opponents in opposition to membership was the destiny of the nation’s fishing trade, a significant a part of Iceland’s economic system.

Gudrun Hafsteinsdottir, the opposition chief who campaigned for the “no” vote, rejected claims that Brussels may resolve Iceland’s financial issues.

“These should not issues that Brussels will resolve for us. These are issues that Icelandic politicians should resolve,” she mentioned.

Supporters, nevertheless, argued EU membership may assist tackle Iceland’s excessive inflation and rates of interest. Iceland’s central financial institution fee is eight %, in contrast with 2.25 % on the European Central Financial institution.

Some additionally noticed adopting the euro as a possible supply of financial stability. However, Iceland already has shut financial hyperlinks with the EU.

It belongs to the European Financial Space and the Schengen free-travel zone, giving it entry to the EU’s single market with out being a member.

What triggered the referendum?

The EU debate gained urgency due to a altering geopolitical setting surrounding Arctic nations. Iceland is a NATO member, however has no army of its personal and relies upon closely on its allies for defence.

Nevertheless, the nation’s left-leaning coalition authorities, elected in 2024, moved up the EU referendum it had deliberate for subsequent 12 months after US President Donald Trump mistakenly named the nation 4 occasions whereas talking about his coverage in direction of Greenland.

The federal government argued that nearer ties with Europe may present Iceland with better safety and strengthen its place amid rising tensions within the area.

Frostadottir mentioned the marketing campaign had raised dialogue about Iceland’s place on the planet and its broader geopolitical place.

“We’ve been ready for this for years to have the ability to have a vote,” Frostadottir mentioned, including ⁠⁠that her authorities would proceed its work whatever the final result.

What occurs subsequent?

It’s unlikely that Iceland will resume EU accession negotiations in the course of the present authorities’s time period, which runs till 2028.

The federal government had already mentioned it will respect a “no” vote. Additionally it is anticipated to consult with parliament the query of whether or not Iceland ought to formally withdraw its EU membership software.

For now, Iceland will stay outdoors the EU whereas persevering with its present relationship with the bloc by means of the European Financial Space and Schengen.