Iceland rejects restarting EU membership talks:Fishing rights, national control shape referendum outcome; PM Frostadottir faces setback

Icelanders have voted against restarting talks on joining the European Union (EU), dealing a setback to Prime Minister Kristrún Frostadóttir’s government. The referendum was not a vote on joining the EU immediately. Instead, voters were asked whether the country should restart negotiations with Brussels. A final decision on membership would have required another referendum. The ‘No’ vote won by about 52.5% to 47.5%, according to reports. The result ends the government’s immediate plan to reopen negotiations that have been frozen for more than a decade. Why were Icelanders divided? The debate was largely about money, fishing and national independence. Supporters said closer ties with the EU could help Iceland deal with high interest rates and living costs and provide greater security at a time of growing tensions in Europe and the Arctic. The issue gained further attention following US President Donald Trump’s repeated comments about Greenland, which is located close to Iceland. Supporters of EU membership argued that stronger links with Europe could improve Iceland’s position in an uncertain geopolitical environment. Opponents, however, feared that EU membership could weaken Iceland’s control over its fishing waters. Fishing is a major part of the country’s economy and a key national issue. Many also argued that Iceland already enjoys close economic ties with the EU without being a member. What happens now? Iceland applied to join the EU in 2009, during a major financial crisis. Talks were later suspended after a change in government, and the country moved away from the membership process. The latest referendum was intended to reopen that debate. However, the rejection means negotiations will not restart for now. Iceland will remain outside the EU but will continue to have access to the bloc’s single market through the European Economic Area (EEA). ​