Iceland is set to hold a referendum in the coming months to consider reinitiating its process to join the European Union. The decision comes after years of stalled discussions, which began when Iceland applied for EU membership in 2009 and later froze negotiations in 2013 due to concerns about the Eurozone's stability amidst its own recovering economy. Recently, the newly formed social-democrat-led government has committed to reassessing Iceland's relationship with the EU following 2024's emergency elections.

Iceland's Prime Minister, Katrín Jakobsdóttir, announced that the long-promised referendum will take place soon, reversing a decade-long trajectory of withdrawing from EU discussions. Should the Icelandic populace support the resumption of the membership process, the country will need to close negotiations on 22 out of 33 chapters currently required by the EU framework, given that it had already completed discussions on 11 chapters previously.

Moreover, Iceland's position as a close ally of the EU despite its non-membership is also an influencing factor as it continues to participate in various EU policies and frameworks. The push from the US for its allies to strengthen their ties with the EU may further complicate Iceland's decision-making process, adding an international dimension to what is primarily a domestic issue regarding its future within Europe.