Iceland votes on restarting EU accession talks amid cost-of-living debate

Icelanders are voting in a referendum this weekend on whether to restart negotiations on joining the European Union. The ballot asks whether the country should reopen talks with Brussels, rather than decide immediate membership. If voters approve the move, a second vote would still be needed later to finalise any deal.

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The referendum comes as the country debates high interest rates, inflation and the cost of living. A Gallup poll this month found the electorate evenly split, with 46% saying yes to restarting talks and 46% saying no, while 8% were undecided. Other polling has suggested a majority would oppose actually joining the bloc, even if talks were reopened.

Supporters of the proposal say EU membership could improve economic conditions and make housing more affordable. One economics student cited mortgage rates of around 9% in Iceland, saying that was a major reason home ownership is difficult for younger people. He argued that replacing the krona with the euro could help bring down interest rates and inflation, although that view is disputed by opponents.

Those against restarting talks say the country should address inflation and borrowing costs through domestic policy rather than by seeking EU membership. A no-campaign supporter said the argument that Iceland must join the bloc because of high prices and interest rates was wrong, and that the government should do its job instead. He also questioned whether Iceland would have enough influence in Brussels even if it gained a seat at the table.

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Fishing is another sensitive issue in the debate, reflecting the importance of the industry to Iceland's economy and identity. The referendum is also taking place against the backdrop of concern about Donald Trump, which has added to the wider political mood around the vote. Together, those issues have turned the ballot into a test of how Icelanders weigh economic pressures against sovereignty and control over national policy.

Iceland has long had a complicated relationship with the European Union. The country previously held accession talks, but the current vote is only about whether to restart them, not to approve membership itself. That means the result would begin a process rather than complete it, and any eventual agreement would still need to be put to voters again.

The close polling suggests the outcome may hinge on turnout and on undecided voters. What remains unclear is whether a yes vote would translate into sustained support for eventual membership, given that other polls have shown stronger resistance to joining than to reopening talks. The immediate next step, if the proposal passes, would be renewed negotiations with Brussels and a later referendum on the final terms.

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