As Iceland’s elites quietly bankroll a fiery ‘no’ campaign, a veteran pro-EU economist warns they are using money, fear and Kremlin-style talking points to shut down even the right to negotiate with Brussels.

Icelanders are voting Saturday on whether to restart talks about joining the European Union. The decision has divided the nation of 400,000 over issues of sovereignty.

Iceland votes Saturday on resuming EU membership talks. A "Yes" would restart negotiations with Brussels, with fisheries likely to emerge as the key sticking point. A "No" could…