Iceland EU referendum on a knife edge as counting continues

Iceland's closely fought referendum on whether to resume membership discussions with the European Union is going down to wire, with the result too close to call.

Key points

• Iceland began its application to join the EU in 2009 after the 2008 financial crisis and the collapse of Iceland's banking system.
• Nevertheless, debate in this island nation of almost 400, 000 residents centred more on its fishing industry rather than security reservations.
• Its application was already well advanced when a eurosceptic administration came to power in 2013 and put negotiations on hold.
• The question on the ballot was: "Should Iceland resume accession negotiations with the European Union?"
• The referendum campaign has fuelled debate regarding Iceland's place in the world, Frostadottir stated after casting her ballot in the capital on Saturday.

While 49.9% remarked yes, public broadcaster RUV stated, with just 435 votes splitting them, based on the first 153, 197 votes counted of the 270, 000 voters eligible, 50.1% rejected the government's proposal.

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

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.

Its application was already well advanced when a eurosceptic administration came to power in 2013 and put negotiations 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 plenty of No voters feared they would cede some control of their lucrative fishing grounds under the EU's common fisheries policy.

Meanwhile, the referendum campaign has fuelled debate regarding Iceland's place in the world, Frostadottir stated 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, " Frostadottir remarked, adding that her administration would continue its work regardless of the outcome.

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

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

Equally, the No vote would not rule out the chance of Iceland resuming discussions going forward. While economic problems dominated the referendum campaigns, security worries additionally featured.

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

In practice, the country has backed Ukraine during Russia's full-scale invasion and authorities have been alarmed by Russia's climbed maritime manoeuvres near the island. Trump's expressed interest in taking over Greenland has additionally triggered concern.

In short, iceland EU referendum on a knife edge as counting continues is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.