Inside a bustling waterfront factory in Reykjavík, workers in blue overalls sort freshly caught cod and haddock that will mainly be sent to European markets.
Visir fishing boss Pétur Pálsson warns that if Iceland joins the EU it could lose control over its fisheries and send jobs abroad.
On Saturday, the island’s nearly 400,000‑strong electorate will vote on whether to resume EU membership talks. Polls suggest the result is too close to call.
Supporters argue that deeper European ties could stabilise Iceland’s volatile currency and curb soaring inflation, potentially easing the country’s high cost of living.
Opponents fear that EU rules would dilute Iceland’s sovereignty, particularly its prized fishing waters, and prefer to remain outside the bloc.
Political leaders in Iceland cite the changing geopolitical landscape – the war in Ukraine, the US’s interest in Greenland and Russian naval activity near the GIUK gap – as reasons to lean towards EU membership for security and economic reasons.
Finance Minister Daði Már Kristófersson says the government plans to negotiate “a special arrangement” that would protect fish and agriculture, drawing on examples of Norway and Sweden having tailored terms.
Despite this, many residents remain sceptical. The Icelandic Farmers’ Association’s head voiced concern that no member states have permanent opt‑outs, and that EU policies focus on a 450‑million‑person market rather than a 400‑thousand‑person country.
Supporters of the Yes campaign point to higher salaries and the need for greater financial stability, while the No side insists any EU entry could otherwise erode their control over national resources.
Whatever the outcome, the referendum is keenly watched across Europe: a Yes vote could spark months of negotiations, whereas a No vote might be seen as a blow to European expansion efforts.
