Politics

Iceland rejected EU talks, but the country is split almost in half

Iceland’s EU referendum ended with a narrow rejection of renewed membership talks, with 52.8% voting No and 47.2% voting Yes on Saturday, 29 August. The result leaves the country’s relationship with the European Union formally unchanged, but revealed an unusually even divide over whether Iceland should move closer to full membership.

According to RÚV’s final count, 118,040 people voted No and 105,339 voted Yes, a difference of 12,701 votes. Another 1,652 ballots were blank or invalid.

Turnout reached 82.5%, with 225,031 of the 272,690 registered voters casting a ballot. It was higher than the 80.2% recorded in Iceland’s 2024 parliamentary election.

The referendum did not ask Icelanders whether they wanted to join the EU. Voters were deciding whether the government should restart the accession negotiations that Iceland began after applying for membership in 2009. The talks were suspended in 2013, while in 2015 the Icelandic government asked the EU not to consider the country an active candidate for membership.

A Yes would therefore have opened negotiations rather than automatically taking Iceland into the Union. Any eventual accession agreement would have required another referendum.

The Iceland EU referendum divided Reykjavík from the rest of the country

The national result conceals a pronounced territorial divide.

Both Reykjavík constituencies voted Yes. Support for restarting negotiations reached 57.5% in Reykjavík North and 54.5% in Reykjavík South.

Every other constituency voted No.

Opposition was strongest in the Northwest constituency, where 62.9% voted No, followed by the Northeast with 61.2% and the South with 60%. Even the Southwest constituency surrounding the capital rejected negotiations, although by a narrower 53% to 47% margin. RÚV’s constituency results therefore show an Iceland divided not simply into two almost equal camps, but also increasingly along an urban-rural line.

The geography reflects some of the main arguments that shaped the campaign. Fishing and agriculture are particularly important outside the capital area, and both sectors became central to opposition to further European integration.

Fishing was the most sensitive issue. Marine products account for around 40% of Iceland’s goods exports, and EU membership would eventually require negotiations over Iceland’s relationship with the Common Fisheries Policy. Reuters reported before the vote that concerns over control of fishing resources had become one of the principal arguments of the No campaign.

The European Commission had signalled that it understood the specific importance of fisheries to Iceland and that negotiations could take those circumstances into account. But no exemption had been agreed, because the referendum came before any new negotiations could begin.

For many opponents, that uncertainty was itself part of the argument for voting No.

A campaign that became much closer as voting day approached

For much of the campaign, supporters of reopening the negotiations appeared to have a small advantage.

A Maskína poll in June put Yes at 53.1%, against 46.9% for No. By early August, the Yes lead had narrowed to 52.2% against 47.8%, and in the final Maskína survey before the referendum it stood at only 51.3% to 48.7%. The polling trend reported by Euronews showed a gradual erosion of the pro-negotiation advantage.

The final Gallup poll, conducted between 24 and 27 August, was the first major survey to put the opponents clearly ahead: 51.6% No against 48.4% Yes. The survey covered 4,583 respondents.

The arguments remained relatively consistent throughout the campaign.

Supporters said negotiations would allow Iceland to discover the actual terms it could obtain before making a definitive choice. They also argued that membership could give the country greater influence over European decisions, reduce economic uncertainty and potentially open the way towards adopting the euro.

The geopolitical context added another dimension. Prime Minister Kristrún Frostadóttir had argued that developments around the Arctic and the increasingly uncertain transatlantic relationship made it worth reconsidering Iceland’s position in Europe.

Opponents focused instead on sovereignty, fishing, agriculture and the argument that Iceland already receives many of the practical benefits of European integration without being an EU member.

That message ultimately proved more effective.

Image: Kristrún Frostadóttir and Ursula von der Leyen // Olivier Hoslet via EPA

Young Icelanders changed direction during the campaign

One of the most striking developments concerned younger voters.

In Gallup’s June survey, 63% of Icelanders aged between 18 and 29 said they intended to vote Yes, compared with 37% for No. By the last Gallup survey in late August, those proportions had effectively reversed: 60% of the youngest voters said they intended to vote No and only 40% Yes.

RÚV political analyst Hafsteinn Birgir Einarsson said the figures suggested that the No campaign had succeeded in reaching younger voters during the final stages of the campaign. RÚV described the shift as one of the most significant changes recorded by the polls.

The figures should be interpreted with some caution. They compare pre-election surveys rather than actual ballots, and Iceland does not publish referendum results by age. It is therefore not possible to say from the final count exactly how 18-to-29-year-olds voted.

But the movement is politically significant. The youngest age group had initially been among the constituencies most favourable to renewed negotiations and became, according to the last Gallup poll, the age group most inclined to vote No.

It also helps explain how the campaign changed. Rather than following a simple pattern in which younger Icelanders favoured integration and older generations defended sovereignty, the European question cut across generations as polling day approached.

Progressive Party (Framsóknarflokkurinn) leader Lilja Alfreðsdóttir, who campaigned against reopening negotiations, described the result after the vote as “a victory for young people”, saying that the No campaign had managed to bring younger voters onto its side.

Iceland remains deeply integrated with the EU

Despite the political significance of the referendum, very little changes immediately in Iceland’s everyday relationship with the European Union.

Iceland will remain part of the European Economic Area (EEA), alongside Norway and Liechtenstein. Through the EEA Agreement, the three countries participate in the European single market and apply legislation governing the free movement of goods, services, capital and people, as well as rules covering areas including competition, state aid, consumer protection and the environment. The European Commission describes the EEA as the main framework governing EU-Iceland economic relations.

Fisheries and agriculture are largely outside the EEA framework, one reason why fishing remained such an important distinction in the referendum debate.

Iceland will also remain a member of the Schengen area, which currently includes 25 EU countries and four non-EU states: Iceland, Norway, Switzerland and Liechtenstein. The European Commission’s Schengen framework means Iceland continues to participate in the European area without systematic internal border controls.

The consequence is an unusual form of integration. A considerable amount of EU single-market legislation eventually becomes applicable in Iceland through the EEA, but Iceland does not have representatives voting in the European Parliament or the Council of the European Union.

The EEA countries can try to influence proposals while the European Commission is preparing legislation, including through experts and consultation mechanisms. But EFTA itself acknowledges that the EEA countries have limited influence once formal EU decision-making begins.

It is this trade-off that will remain after the referendum, access to much of European integration, together with significant regulatory alignment, but without the political representation that comes with EU membership.

Image: European Commission // EPA-EFE/OLIVIER MATTHYS]

The European question has been rejected, not resolved

The result is a defeat for the Social Democratic Alliance (Samfylkingin) and the Liberal Reform Party (Viðreisn), the two governing parties most supportive of closer EU integration. Frostadóttir had previously said that a No vote would be respected and that her government would not continue pursuing the question.

For the EU, the outcome also removes the prospect of gaining another Nordic member and a stronger institutional presence in the Arctic at a time when enlargement has returned to the centre of European policy.

But 47.2% of Icelandic voters supported reopening negotiations, and Reykjavík produced clear Yes majorities. The European Movement in Iceland (Evrópuhreyfingin) said after the result that it would respect the outcome while continuing to campaign for closer European cooperation.

The referendum therefore closes the immediate route towards membership without settling the underlying debate.

Iceland will continue to sit in a position it has occupied for three decades: deeply connected to the European Union economically and institutionally, but outside its political decision-making structures.

For now, a narrow majority of Icelanders has decided that this distance is still preferable to finding out what full membership could look like.

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