Via the BBC:
The government of Iceland has announced it is no longer seeking EU membership for the North Atlantic state. Foreign Minister Gunnar Bragi Sveinsson said he had already informed current EU president Latvia and the European Commission about the cabinet’s move. Iceland gave no reason for dropping its bid to join the 28-member bloc. But after winning the 2013 elections two Eurosceptic parties said the nation already enjoyed most full membership benefits through deals with the EU. The island nation has free trade arrangements with the bloc and is part of the Schengen visa-free travel zone.
Five other nations are formally recognized candidates for EU membership: Albania, Macedonia, Montenegro, Serbia, and Turkey.