REYKJAVIK (AFP) - Iceland's parliament voted in favour of applying for EU membership on Thursday, opening the way for negotiations to begin with the 27-nation bloc.

A total of 33 members of the 63-seat Althingi backed the governing Social Democrat party's proposition to open membership talks with Brussels, while 28 voted against and two abstained.

Five members of the Left Green party, the Social Democrats' partner in the coalition government, rejected the proposition, including Jon Bjarnason, the minister of agriculture and fisheries.

The pro-EU Social Democrats, who hold 20 seats, and the 14-strong Left Greens formed a coalition government at the end of April following a general election.

Iceland's Prime Minister and Social Democrat leader Johanna Sigurdardottir told AFP she was "extremely pleased" with the result and that EU membership would be a good deal for the country.

"On this day, I am extremely pleased and happy," she said. "I am convinced that this conclusion we reached here today will be beneficial for the nation."

The next step would be to apply for membership before the next EU foreign ministers meeting, which is set to take place in Brussels July 27, Sigurdardottir added.

Swedish Prime Minister Fredrik Reinfeldt, whose country currently holds the EU presidency, welcomed the news.

"I welcome that the Icelandic parliament has now decided for itself to apply for EU membership," Reinfeldt said in a statement.

"The application is going to be handled according to the (European) Council's established procedures," he added.

Under those procedures, Iceland will make its application to the Swedish EU presidency, which in turn will ask fellow EU members if there are any objections to the North Atlantic island joining.

If there is no opposition, the European Council will ask the European Commission to report on whether Iceland should be given candidate status.