Despite claims from European populists, including Slovak Prime Minister Robert Fico, that the European Union is a failed project, Iceland is considering joining this bloc. The government in Reykjavík has expedited plans for a referendum on EU membership, previously scheduled for 2027, to take place as soon as August. This development raises significant questions about the future of the EU and its appeal in light of rising nationalist sentiments across Europe.

While Sweden and Finland have rushed to join NATO in response to threats from Russia, Iceland’s concerns are directed more towards the United States, particularly reflecting on Donald Trump’s controversial statements regarding tariffs and the annexation of Greenland. The geopolitical landscape in which these discussions are taking place highlights Iceland's strengthening relationship with Europe while reassessing its historically neutral stance. The urgency of the referendum indicates a significant shift in public sentiment and governmental strategy.

The recent diplomatic crisis surrounding U.S. President Trump’s confusing comments at the World Economic Forum about Greenland and Iceland has stirred emotions in Reykjavík. His remarks, where he mistakenly conflated the two regions, coupled with ongoing concerns over American foreign policy, have prompted Icelanders to reconsider their alliances. As Iceland actively weighs its future within the EU, its actions could serve as a litmus test for the EU’s attractiveness and resilience amid growing euroscepticism in other member states.