The European Union put on a brave face on Sunday in response to the Icelandic vote against resuming EU accession negotiations, but the result is no doubt a big blow to Brussels and a boon for eurosceptics.

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

Opponents defeat measure on restarting EU talks for first time since 2008 by margin of 52.8% to 47.2%, in blow to left-leaning government