Iceland is moving forward with plans to hold a referendum on whether to resume its EU accession negotiations, a process it halted in 2013 after four years of talks. The European Commission has welcomed this decision, highlighting Iceland as a close and valuable partner. The announcement comes against a backdrop of rising living costs and the ongoing war in Ukraine, which have rejuvenated public discussion around Iceland's European prospects, as reflected in recent polls.

The decision to hold a referendum indicates a shift in the political landscape of Iceland regarding EU relations. Previously, the negotiations were halted due to concerns about domestic priorities versus the obligations and benefits associated with EU membership. However, current economic pressures and geopolitical factors seem to be influencing both public and governmental sentiment, prompting a re-evaluation of its relationship with the EU.

The Icelandic government's preparations for the referendum are expected to take place in the coming months. The outcome of this referendum could have significant implications not only for Iceland's future within the European framework but also for the EU's expansion policy and its relations with existing member states. A move towards resuming negotiations might bring Iceland closer to EU membership, depending on the voters' decision and the subsequent negotiations that would follow if the referendum is passed.