Iceland holds knife-edge referendum on EU - and it could be decided on fish

Iceland's referendum on European Union membership talks is set to take place on Saturday, with the outcome far from certain. The country's decision to hold a referendum was sparked by a fishing dispute with the EU, which has significant economic implications for Iceland. The country's fishing industry is a major contributor to its economy, and any changes to its fishing quotas or regulations could have a substantial impact on the sector.

The referendum is also taking place against a backdrop of economic and geopolitical tensions. Iceland's economy has been recovering from the financial crisis, but it remains heavily reliant on its fishing industry and tourism sector. A decision to join EU membership talks could have significant implications for the country's economic policy and its relationships with other countries. The outcome of the referendum will be closely watched by investors and policymakers, who are keen to see how Iceland's decision will affect its economic prospects.

What's next to watch is how the referendum result will impact Iceland's relationships with the EU and other countries. If the vote is in favor of EU membership talks, it could lead to a significant shift in Iceland's economic policy and its role in international affairs. Conversely, a vote against membership talks could see Iceland maintain its independence and continue to negotiate its own trade agreements. Either way, the outcome will have important implications for the country's future, and it will be closely watched by observers in the region and beyond.

Originally reported by bbc.co.uk. MyNews adds analysis for general news readers.