What happened
A referendum in Iceland has reflected the view that joining the European Union would not make things better, as the country grapples with worsening high inflation and high interest rates.
Despite the country's roughly 400,000 people enjoying some of the highest wages in the world, Iceland also suffers from some of the steepest living costs globally.
According to calculations by Icelandic unions, the price situation in Iceland stands out as extremely expensive.
Why it matters
This signals that Icelanders are weighing EU membership against their own economic woes, but see no clear benefit from joining the bloc.
The combination of high wages and even higher living costs means the population feels the squeeze of inflation and interest rates, complicating any debate about integration.
Key facts
Iceland's population is only about 400,000.
Icelandic wages rank among the world's highest.
Iceland experiences among the most expensive living costs globally.
Icelandic unions have calculated the country's price levels.
The referendum occurred amid worsening high inflation and high interest rates.
The public sentiment is that joining the EU would not be better.
What to watch next
Whether the referendum result influences Iceland's future approach to EU membership talks.
How Icelandic policymakers respond to inflation and cost-of-living pressures amid the referendum's message.