Icelandic citizens have chosen to remain outside the European Union, according to the results of a recent referendum. The decision came after the government’s proposal to reopen discussions on EU membership was rejected, with concerns raised about the critical importance of Iceland’s fishing grounds.

With a population of 400,000, Iceland has been deliberating over joining the EU for more than ten years. Initially anticipated to narrowly support initiating membership negotiations, a shift in public sentiment was evident in recent opinion polls.

In the referendum held on Saturday, 52.8% of votes opposed the government’s plan to engage in talks with Brussels, while 47.2% were in favor. Notably, 82.5% of eligible voters participated in the referendum, with only the central Reykjavik constituencies showing majority support for negotiations, while rural areas and suburbs of Reykjavik voted against.

The government had advocated for EU membership as a safeguard against trade disputes and Arctic rivalries, portraying the referendum as a crucial decision. Prime Minister Kristrun Frostadottir stated that a “no” vote would halt discussions as long as her center-left coalition remained in power.

In Brussels, there was optimism that an Icelandic vote in favor of joining the EU could alleviate skepticism about EU expansion and strategically enhance the bloc’s position amid Arctic security concerns. Discussions also revolved around whether EU membership could enhance Iceland’s security, especially in light of uncertainties surrounding the U.S. commitment to NATO.

For many Icelanders, the focus was primarily on the fishing industry rather than security considerations. Fishing plays a significant role in Iceland’s economy, contributing 15% to the GDP and accounting for approximately 40% of export earnings.

Financial matters were central to the referendum debate, with concerns about high inflation and interest rates in Iceland. Proponents of EU membership argued that adopting the euro could offer economic relief, as Iceland currently faces an interest rate of eight percent compared to the European Central Bank’s 2.25 percent rate.

Opposition leader Gudrun Hafsteinsdottir, a key figure in the “no” campaign, downplayed the economic benefits of EU accession, emphasizing that Iceland’s challenges require local solutions rather than EU intervention. 70-year-old voter Ragnhildur Skarphedinsdottir echoed this sentiment, expressing confidence in Iceland’s independent trajectory.

Under EU regulations, fishing quotas are determined based on historical fishing practices, among other factors. While some Icelandic officials believe Iceland would maintain control over its waters due to historical rights, others, like Hafsteinsdottir, remain skeptical about potential EU assurances of flexibility in the long run.