The directorship of the European Union in Brussels has serious doubts that Icelanders would approve joining the EU if the matter were put up for referendum.
RÚV reports that an EU document not available to the public states that the Icelandic government has been divided on the EU question from the start (Social Dems have always been pro-EU, while most Leftist-Greens have been opposed) and that public support for joining the EU has been steadily dropping. The documents cites Icesave as one of the reasons why Icelanders are suspicious of the EU. As of last March, only about one-third of Icelanders have expressed support for joining the EU. A new poll from MMR shows that only 15% said they trust the EU a great deal; 55.5% said they trust it very little.
This is troublesome for the government, as even if the application for accession that was submitted last summer is approved by the EU, the matter will still have to be voted on in referendum. However, if the EU directorship believes a referendum will fail anyway, they might not ultimately approve accession anyway.
Most Icelanders who are opposed to joining the EU cite worries that fishing territory sovereignty will disappear, and that farmers will not be able to compete with cheaper, imported products.