Iceland's closely fought referendum on whether to resume membership talks with the European Union is going down to wire, with the result too close to call. Based on the first 153,197 votes counted of the 270,000 voters eligible, 50.1% rejected the government's proposal, while 49.9% said yes, public broadcaster RUV said, with just 435 votes splitting them.

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.

Iceland Referendum Knife Context and Background Analysis

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 outcome of this referendum will have significant implications for Iceland's economy, trade relationships, and future involvement in European affairs. The country has backed Ukraine during Russia's full-scale invasion and officials have been alarmed

A Yes vote would not be a final decision on joining the EU, but a move towards an accession agreement, which would then have to be approved. Equally, the No vote would not rule out the chance of Iceland resuming talks in the future. The Prime Minister has promised that her government will continue its work regardless of the outcome.

Why This Matters

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

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Iceland's Prime Minister Kristrún Frostadóttir votes in the referendum in Reykjavik

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

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

Prime Minister Kristrún Frostadóttir's centre-left government promised to hold a referendum

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