According to Bloomberg, on August 29 local time, Iceland held a referendum to decide whether to resume negotiations to join the EU.
Polls show that the support rates for both sides are very close. In a latest Gallup survey, those who oppose the restart of negotiations are slightly ahead. Even if the negotiations to join the alliance are restarted and completed, Iceland still needs to hold a second referendum. Additionally, joining the alliance requires approval from all existing EU member states.
In this referendum, voters only need to choose “for” or “against”. Those who support the union argue that joining the EU could reduce inflation and interest rates; switching to the euro in the future would also bring stability benefits to the country. Opponents, however, are worried that joining the EU might undermine Iceland’s autonomy over its own fisheries and agriculture.
The report indicates that this referendum is testing the geopolitical appeal of the European Union. The process of expanding the EU has been interrupted for 13 years, making it the longest period of inactivity in the organization’s history. As one of the countries with the highest per capita income in Europe, if Iceland approves the restart of membership negotiations, it could help dispel doubts about the EU’s attractiveness. However, if the referendum rejects the restart of negotiations, this would be a blow to the EU, which is currently seeking to accelerate the process of granting membership.
Iceland has a population of less than 400,000. In 2009, the financial crisis plunged Iceland into its worst economic recession since independence in 1944. The country's major banks went bankrupt one after another. Iceland submitted an application to join the European Union, hoping to receive economic support from it. Negotiations regarding membership were suspended in 2013. After the Icelandic government was re-elected at the end of 2024, the topic of resuming negotiations was brought up again.
