It looks like they are on their way to losing the referendum, so the Icelandic government is looking at withdrawing the bill and renegotiating terms with the British and Dutch.

There are only 320 thousand people on the island, and the legislators have a pretty good idea on how the voters feel, because they know, and have talked with, a lot of them.

Fundamentally, the voters are showing a level of courage that the politicians are not, and refusing to be blackmailed.