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Iceland's government wants to hold a referendum in August on whether to resume membership talks with the European Union, more than a decade after it hesitated to join the bloc.
The cabinet on Friday approved a resolution calling for a vote on August 29 on the resumption of accession talks, national broadcaster RUV reported. The proposal must be approved by Iceland's parliament, the Althingi, before the referendum can be held.
The decision for the Arctic island nation, which is fully independent, with a population of just 400,000, comes at a time when concerns are growing about geopolitical instability and economic pressures.
Prime Minister Kristrun Frostadottir's center-left coalition government, elected in 2024, had said it wanted to hold a vote by 2027, but accelerated that deadline after US President Donald Trump threatened to take over neighboring Greenland.
Trump has repeatedly referred to Greenland as Iceland during a heated international debate over the president's intention to acquire the vast Arctic territory.
The rising cost of living, Russia's war in Ukraine and transatlantic tensions have also contributed to growing concerns about Iceland's security. The volcanic island nation has no army and relies on NATO and a bilateral defense agreement with the United States.
For decades, Iceland avoided applying for EU membership because it was worried it would be forced to share its rich fishing grounds in the North Atlantic with ships from other European countries.
It applied to join the bloc in 2009 after the country's debt-laden banking sector collapsed during the 2008 global financial crisis. Talks were suspended in 2013, when a center-right government came to power, and they officially ended in 2015.
Iceland participates in the EU's single market through the European Economic Area and the Schengen free travel zone.
Ten countries are currently in accession talks with the EU, with Albania, Moldova, Montenegro and Ukraine at the top of the list.
Joining the bloc requires a year-long process led by the European Commission, which evaluates 35 sets of criteria, from transparency and financial systems to fisheries, transport networks, agricultural regulations and freedoms such as speech and religion.
All current EU member states must unanimously agree to admit the applicant. Hungary has threatened to veto Ukraine's admission.
EU Enlargement Commissioner Marta Kos said that an "important decision now awaits the Icelandic people."
"Iceland is already a strong country and a trusted partner. In a rapidly changing world, the European Union offers an anchor in a community of values, prosperity and security," Kos wrote in X.
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