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

EXPLAINER

With nearly all votes counted, the ‘no’ aspect 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” aspect was forward by 52.5 % to 47.5 %, based on nationwide broadcaster RUV. Official outcomes haven’t been introduced but.

The end result is just not 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 might assist Iceland confront rising financial and geopolitical pressures, together with tensions over Arctic safety.

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

Here’s what you have to 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 part of the EU. A “sure” end result 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 financial 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 end result.

What was the results of the vote?

The “no” aspect gained, based on RUV, with 52.5 % towards 47.5 % for “sure”. Some votes from one constituency have been nonetheless pending, however they weren’t anticipated to vary the end result.

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

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

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

Crucial argument put ahead by opponents towards membership was the destiny of the nation’s fishing trade, a serious a part of Iceland’s financial system.

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

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

Supporters, nonetheless, argued EU membership might assist handle Iceland’s excessive inflation and rates of interest. Iceland’s central financial institution charge 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 surroundings surrounding Arctic nations. Iceland is a NATO member, however has no navy of its personal and relies upon closely on its allies for defence.

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

The federal government argued that nearer ties with Europe might present Iceland with higher 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 earth 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 throughout the present authorities’s time period, which runs till 2028.

The federal government had already mentioned it might respect a “no” vote. Additionally it is anticipated to confer 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.