Iceland EU referendum on a knife edge as counting continues

Iceland has voted against resuming talks on joining the European Union 13 years after they were broken off.

Public broadcaster RUV reported that 52.8% of 225,031 voters rejected the government's proposal, while 47.2% had said yes. Some 12,600 votes separated them.

Prime Minister Kristrún Frostadóttir's centre-left government promised to hold a referendum by 2027, but brought it forward because of international tensions, including US President Donald Trump's threats against Greenland.

However, debate in this island nation of almost 400,000 people centred more on its fishing industry rather than security concerns.

With some 270,000 people eligible to vote, RUV reported the turnout of 82.5% was the highest in any election in Iceland since 2009.

Already part of the EU's single market and Schengen border-free zone, EU membership would bring Iceland into the customs union and eventually the euro.

Iceland began its application to join the EU in 2009 in the wake of the 2008 financial crisis and the collapse of Iceland's banking system.

Its application was already well advanced when a eurosceptic government came to power in 2013 and put talks on hold. Fishing rights was the biggest obstacle then - as it remains today.

Fish and marine industries account for almost 40% of Iceland's exports and many No voters feared they would cede some control of their lucrative fishing grounds under the EU's common fisheries policy.

The referendum campaign fuelled debate about Iceland's place in the world, Kristrún said after casting her ballot in the capital on Saturday.

"This is a great day, we've been waiting for this for years to be able to have a vote," Kristrún said, adding that her government would continue its work regardless of the outcome.

The question on the ballot was: "Should Iceland resume accession negotiations with the European Union?"

A Yes vote would not have been a final decision on joining the EU, but a move towards an accession agreement, which would then have to be approved by a second referendum.

Equally, the No vote does not rule out the chance of Iceland resuming talks in the future.

While economic issues dominated the referendum campaigns, security concerns also featured.

Iceland is a founder member of Nato but it has no military and relies on its allies for defence.

The country has backed Ukraine during Russia's full-scale invasion and officials have been alarmed by Russia's increased maritime manoeuvres near the island.

Trump's expressed interest in taking over Greenland has also raised concerns.

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