Icelandic voters rejected a referendum reopening negotiations for European Union membership, invigorating eurosceptics across the continent.

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