Why has Iceland distanced itself from the European Union?

30/08/2026 - 11:20 GMT+2

Already a member of NATO, the European Economic Area (EEA), the single market and the Schengen Area, for decades Iceland has debated whether or not it should become a full member of the European Union.

Fears for the fishing and farming sectors are the focus of the Eurosceptic messages. Opposition to the EU in rural areas is up to 80%, according to some polls.

Farmer Stefán Geirsson markets milk and beef from the country’s agricultural heartland. Full EU membership would mean an avalanche of cheaper agri-food imports, with which farmers here would simply be unable to compete, he fears.

“We have examples from Finland where the farmers’ price for their products dropped 40% when they joined the EU and many farmers went out of business. If we lose the market, I think no subsidies can make up for that,” he says.