Iceland is already part of the European Economic Area (EEA) and the Schengen visa-free zone, so the free movement of goods, capital, services, and people applies there. According to the article, the country transposes about 75% of EU laws and directives into national law, and the financial services, energy, and transport markets are regulated according to European standards.
The author writes that the outcome of the vote was an unpleasant signal for Brussels amid attempts to revive EU enlargement. At the same time, as the text emphasizes, Icelanders did not vote for isolation, did not break treaties, and did not try to “take back control”.
The fishing industry, which accounts for 15% of Iceland’s GDP and 40% of export revenue, was the main opponent of full membership. The “no” campaign argued that joining the EU and the common fisheries policy would put this sector at risk, as happened during the “cod wars” of the 1960s and 1970s with Britain.
The vote also showed a noticeable divide between Reykjavík, the capital of Iceland, and the rest of the island. Capital residents were more likely to see membership as additional protection for a geographically isolated country, while many fishermen and farmers outside the capital voted against it.
The official reaction in Brussels was restrained, but some politicians acknowledged the EU’s disappointment. French politician Marine Le Pen said the result showed the appeal of a Europe of “free, sovereign nations”, and British politician Nigel Farage of Reform UK congratulated Icelanders on having “preserved independence”.
Belgian Green MEP Saskia Bricmont said that “the European Union no longer inspires people”, and French centrist MEP Sandro Gozi called the results “a warning that Europe must take seriously”. The author adds that even talk of a stronger EU role in security did not convince part of the electorate, and the mutual defense clause was not a decisive argument.
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