Iceland Rejects EU Membership in Blow to Brussels Expansion Plans

Iceland has voted against joining the European Union in a major setback for Brussels' expansion plans. With preliminary numbers showing 52.5% of voters opposed to EU membership, compared to 47.5% in favor, Icelandic media is calling it for 'no.' The result will dent momentum in Brussels about enlarging the bloc, which has not grown since Croatia joined in 2013.

The 'no' campaign was successful in convincing voters that joining the EU would mean giving up national sovereignty and potentially harming the country's prized fishing sector. In contrast, the 'yes' camp argued that joining the eurozone would bring down record high inflation.

Iceland has been a member of NATO since 1949 and is part of the European Economic Area (EEA), which allows it to access the EU's single market without being able to shape its laws. The country had applied for EU membership in 2009 but withdrew its application in 2013.

While the result will come as a blow to Brussels, Icelandic officials are downplaying the significance of the vote. 'There is no reason for Brussels to take it in a negative way,' said Bjarni Benediktsson, former prime minister and CEO of the Confederation of Icelandic Enterprise.