Reykjavik (AFP) - Iceland’s government on Friday proposed that a referendum be held on August 29 on resuming the country’s EU membership talks, after they were terminated in 2015.

The North Atlantic island submitted an EU membership application in 2009, a year after the stunning collapse of its financial sector.

Negotiations began in 2010 but were suspended three years later following parliamentary elections, and in 2015 the then-government announced the talks were terminated.

Foreign Minister Thorgerdur Katrin Gunnarsdottir told reporters she would present the proposal to parliament early next week. It remained unclear on Friday whether the government had a majority for its resolution.

“We intend to ask the nation the following question: ‘Should negotiations on Iceland’s accession to the European Union continue?’ And then the nation can answer with two options: ‘Yes, negotiations should continue’, or ‘No, they should not continue’,” she said.

An opinion poll published in early February by public broadcaster RUV found the Icelandic public was evenly divided on joining the EU, which currently has 27 members.

The three parties of the ruling centre-left coalition had agreed in their government platform to hold a vote on the issue by the end of 2027.

Prime Minister Kristrun Frostadottir said Iceland was in a position of strength, making it the right time to put the question to the Icelandic people.

“Iceland is strong economically, but also in terms of national self-confidence, and thus able to make this decision,” she said.

If the country were to resume membership talks, another referendum would be held after the conclusion of the talks asking Icelanders if they want to join based on the negotiated terms.

- World ‘has changed’ -

When Iceland’s accession negotiations were paused, 27 of 33 chapters had been opened, and 11 had been concluded, according to the government.

The unopened chapters included one on fisheries, expected to be the thorniest as Iceland is intent on retaining control over its resources.

The foreign minister said if negotiations were to resume, she wanted to go straight to the difficult chapters.

“I will never sign an agreement – never sign an agreement – that entails ceding Iceland’s control over its resources, such as our fishing resources. I want that to be absolutely clear,” she said.

Iceland’s objectives with EU membership include ensuring control over its resources, strengthening its defences and ensuring stability and economic and other forms of security, she said.

Frostadottir said the world had changed since Iceland last engaged in EU membership talks. The country would be “entering negotiations from a different position”, she said.

“The emphasis on the North Atlantic and the Arctic, on cooperation among these countries, has been transformed,” she said.

US President Donald Trump’s push to take over Greenland has sparked concern in neighbouring Iceland. Its defence is currently provided by the United States and NATO, as it has no military of its own.

“All of us engaged in international cooperation can sense that awareness of Iceland’s uniqueness, and of its strong position and interests… has changed dramatically,” the prime minister said.

Olafur Thordur Hardarson, political science professor at the University of Iceland, agreed with the government’s assessment that Iceland was in a stronger negotiating position now than in 2009.

“Recent developments in the world order – especially the rift between Europe and the US – are likely to make EU leaders more positive towards a deal beneficial to Iceland, especially on natural resources such as fisheries and energy,” he told AFP.

However, it was “impossible to predict” how Icelanders would vote on resuming membership talks, or in a later membership referendum, he said.

EU enlargement chief Marta Kos said Iceland was set for a “significant decision”.

“In a world of competing spheres of influence, EU membership offers an anchor into a bloc grounded in values, prosperity and security,” she said in a statement sent to AFP.

The foreign minister expressed “serious concerns” that Russia might try to influence a future referendum.