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After witnessing the US administration’s confrontation with Denmark and the EU over Greenland, the government of Iceland now has its sights on potential EU membership. The Nordic island country is set to hold a referendum on 29 August 2026 on whether it should resume EU membership negotiations.
The country’s foreign minister Þorgerður Katrín Gunnarsdóttir told Euronews that despite Iceland already being a NATO member, EU membership would strengthen the country’s economic security, while also providing additional cover in its position amongst like-minded states.
Last January, US President Donald Trump announced he would be imposing a 10% trade tariff on eight European states after they announced they would join a reconnaissance mission to Greenland amid the US threats.
“Some nations said, OK, if you are going to put tariffs on us because we are standing with Greenland and Denmark, then we are going to put the tariffs on you,” said Gunnarsdóttir, who belongs to Iceland’s centrist Liberal Reform party.
She says that it was this act of European solidarity which caused a market reaction and led to Trump agreeing to cut a deal on enhanced Arctic Security within the NATO alliance.
“Of course, it affected the markets in the US. And that’s why one of the reasons that I think the US administration responded to that,” she told Euronews’ Europe Today show on Thursday.
While the arguments in favour of joining the EU are clear to her – greater security within a group of 28 amid an unstable global outlook, Gunnarsdóttir says the Brexit debate in the UK is a cautionary tale in not taking anything for granted.
“Everyone knows about Brexit and all the lies that were put on the table in that process,” she said.
“It will not be an easy walk, but in the end, you know, you have to trust the nation,” she added.
Referendum on reviving EU accession talks
A referendum is due in August, where voters will be asked if they favour the revival of formal talks for EU membership. If the vote wins, it will trigger accession negotiations with Brussels. Any final deal on joining the bloc would then be put to another poll.
“It’s just a simple question, should we continue negotiation talks, yes or no?”, said the foreign minister on the margins of meetings with key Brussels officials. “And from my point of view, if you say no, you are closing a lot of doors.”
“If you say no, then I’m afraid that Iceland will be pretty much alone.”
Iceland has been a member of the EU’s single market through the European Free Trade Association (EFTA) since in 1970, meaning it already operates in line with the bloc’s regulatory standards. The EU acquis – the overall body of laws, rights, policies and obligations applying to all member states – falls within the EFTA.
The island with a population of around 400,000 is also part of the EU’s Schengen free travel area, so joining the EU – should the population vote in favour – would, in theory be a relatively seamless process. The government says accession talks could be complete by 2028.