Icelanders have rejected a government proposal to resume accession negotiations with the European Union, putting aside a membership process suspended more than a decade ago. Public broadcaster RÚV reported on Sunday that 52.8% had voted against reopening talks, compared with 47.2% in favour. With counting close to completion, the remaining ballots were not expected to reverse the result. RÚV declared that voters had rejected accession negotiations.

The referendum campaign has fueled debate about Iceland's place in the world, Prime Minister Kristrun Frostadottir told reporters after casting her ballot.

Iceland has rejected the government’s proposal to hold accession talks with the European Union, public broadcaster RUV reported on Sunday with only a small number of…