Neck And Neck
Icelanders go to the polls on Saturday in a referendum on whether to resume membership negotiations with the European Union, in a tight race that will be closely watched in Brussels.
The country of just under 400'000 people applied to join the EU in the wake of a 2009 financial crisis that devastated its economy. The membership talks were suspended in 2013 when a eurosceptic government came to power. Now, the result of the referendum is expected to be very close, with the latest opinion polls putting the 'Yes' and 'No' sides neck and neck.
"It's pretty tight, but I'm always optimistic," Foreign Minister Thorgerdur Katrin Gunnarsdottir, a staunch europhile, told AFP. "It's not done until it's done."
The around 273'000 voters are being asked to answer 'Yes' or 'No' to the question: "Should Iceland resume accession negotiations with the European Union?" If the "Yes" side wins, an accession agreement would be negotiated with Brussels and then put to a new referendum on actual membership.
The issue of fisheries, a pillar of Iceland's economy and over which Reykjavik wants to retain exclusive control, would have to be hammered out with Brussels, which this time around appears more willing to compromise.
With Iceland's economy now flourishing, some voters see no reason to discuss EU membership, seeing as the country already has access to the single market as a member of the European Economic Area. "It's like if you are in a relationship with someone you don't live with, and if you lose something you have by getting married, then why get married?" said Hjordis Vilhjalmsdottir, a 60-year-old radio presenter.
The flip side of Iceland's regained prosperity is soaring inflation and interest rates. Some households are paying nine percent interest on their mortgages, making the prospect of joining the eurozone, with its much lower rates, very appealing.