Iceland, a country situated on the edge of Europe, is on the cusp of a significant decision. The government plans to hold a referendum on restarting accession talks with the European Union on August 29th. This move comes after a shift in attitudes, particularly since Russia's invasion of Ukraine in 2022. Most Icelanders support joining the EU, with those in favor outnumbering those against it, although many remain undecided.
The old arguments for joining the EU have been reheated, including the potential to adopt the euro and ditch the small, volatile krona. Icelanders would also gain a say in the bloc's rules. Currently, Iceland, Norway, and Liechtenstein are part of the European Economic Area (EEA), which allows them to adopt EU rules in exchange for access to the single market. However, this can leave them vulnerable to rules drafted in Brussels without their influence.
Russian and Chinese ambitions in the Arctic worry Icelanders, who are particularly vulnerable due to their small population and lack of an army. The country's foreign minister, Thorgerdur Katrin Gunnarsdottir, believes that EU membership would make it harder for the country to be coerced with economic threats. The EU is willing to restart talks, but Iceland will negotiate hard to maintain control over its fisheries.
Euroscepticism remains a force at home, with Icelanders valuing their independence. However, pro-EU Icelanders hope the vote will send a message to MPs, and Norwegians will watch closely to see what deal Iceland gets.
