REYKJAVIK, Iceland—Iceland began formal accession talks with the European Union (EU) on Monday, following several months of preparation by both sides.

Iceland applied for membership following the collapse of its bloated banking industry in 2008, but joining the EU is unpopular with large sections of the public. Some harbor mistrust of the Union because they believe it forced an unfair solution on the island nation to make it repay its debts, while many fear losing the republic’s sovereignty to outsiders.

Minister for Foreign Affairs Oessur Skarphedinsson, who leads the Icelandic delegation, has said membership in the EU could lead to abolishing the country’s capital controls and adopting a new, secure currency.

“The benefits I see for Iceland of joining the Union are quite clear: We seek the right to sit at the family table where decisions are made that affect our future,” Skarphedinsson said at the first session in Brussels.

“We seek the security of a strong, international currency. We seek foreign investments. We seek an environment of stable, lasting growth that is inducive to the development of high-tech industries that already contribute 25 percent of our export earnings.

“Not least, we seek the long-term security a small nation, that neither has nor intends to have a military, would find by belonging to a strong European family.”

There is no deadline for concluding the negotiations.

Iceland is a member of the European Economic Area and has adopted substantial amounts of EU legislation. A screening process which began in November looked in detail at the areas where Iceland already conforms, and where it would have to make progress.

Fisheries, agriculture, regional policy—particularly the opening up of the Arctic—and monetary policy are expected to be key issues in the negotiations.

A powerful fishing faction in Iceland has relentlessly campaigned against the EU for fear of losing exclusive access to fishing grounds, and Icelandic farmers are worried that their industry will collapse if they have to compete with industrial farms in the EU.