Holy crap. The President has vetoed the Icesave bill and called a referendum.
He’s answering questions now. More anon.
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{ 19 comments… read them below or add one }
This is a right move. Let the voters decide and, in the end, they will approve the bill narrowly. Sure, the Icelandic people have been kicked around but they are just and compassionate and will do what is right and fair.
I commented about this just a minute ago on your previous post on this issue. So there will be referendum! So the decision is now in the hands of the people of Iceland including yourself!
Now we are back where we were last July, Iceland has agreed to pay Icesave, all that remains is to find a way how.
The government is likely to withdraw the bill and try to approach the British and Dutch governments to reach some sort of a compromise rather than to have the referendum take place.
Oh, whoops.
OK, most of us don’t have a real feel for how serious this is apart from what we read through you.
When you say (on Twitter) ‘the government could well collapse… we’re doomed’ you presumably mean the current Green/Social Democrat coalition? If so, can the President ask someone else to form a government or does there have to be an election?
In either case, what chance is there that the Independence Party and their associated kleptocrats will get back in? You’ve said pretty confidently before that if there is a referendum the Icesave agreement will be voted down – how sure are you of this?
Good. I think Icelanders should tell the EU: shove it and everyone else a lesson: you don’t socialise losses. Stick that G. Brown. God, I can’t wait until the election here in the UK…
The British and the Danish press have already articles out on the subject “Iceland refuses to pay” Which isn’t what this was about at all. (well I’m pretty sure a lot of the people that signed the petition to the Prez thought so, though)
What horrible PR! Just what we need… :@
When all this is over, be sure to get a new constitution.
I agree this was the right move, also from the point of democracy. Now the British and Dutch governments know they went too far, and can’t push it again the same way.
As for joining the EU, that will be a separate issue, but it is always better to negotiate from a position of strength rather than weakness.
Bad news, I think. The beginning of another lost year? An endless fear mongering competion ahead in case of a referendum? And the reinstallment of the old IP-government as the new one in pursuit to sweep things under the carpet?
There seem to be reactions by the UK, provided by Reuters, indicating that a withdrawal of the bill and an attempt to reach a compromise in consultation with UK & NL as addressed by Sigivaldi could be a likely scenario:
http://www.finanznachrichten.de/nachrichten-2010-01/15820729-uk-says-to-consult-iceland-over-icesave-referendum-020.htm
A step into the unknown, with my flimsy knowledge of Iceland it looks like a no vote in the referendum,return of serve to UK/DUTCH wonder how they will react could be a good ploy to get that 5.5% reduced.As to the figure per Icelander from all these debts I am unsure. I had been fixated on 20 million krona per head but I have read that its only 12,000 euros per head only !! For Alda,her husband and daughter that represents 36 000 euros not really an only sum of money and remember that some people out there have had their mortgage doubled and to pile on that with the consequent tax increases and cut backs of government expenditure, I mean what are you supposed to do close down the education,police and health departments?
@Markku: The problem is that the governments of UK and NL doesn’t seem to care about this. Iceland doesn’t has a real strong position, otherwise the negotiation would look different.
@kevin: Actually thats what is going to happen (at least in parts). The government had to cutdown the budget quite harshly.
Thank goodness a nation has had the courage to stand up against EU thuggery!
Super! Game on. That is the spirit. Much better than total capitulation. Now that a willingness to reject the deal has been displayed, you can go back to the table and get some concessions, if you so desire.
>Super! Game on.
I’ll see your veto and raise you a credit rating downgrade.
http://www.bloomberg.com/apps/news?pid=20601102&sid=aIh6ZKT1BOmY
You can’t eat credit ratings.
Offer the deposit insurance minimum and no more.
Blag it for as long as you can and hope the £ is destroyed by inflation.
Offer UK some sort of 50 year deal on geothermal, if they can figure out a way to wire it to Scotland everyones a winner.
I would also start making big noises about being allies during the war, play the Tories against Labour.
@Chris: Sure the position of Iceland is very weak, but IMO, as a nation it would be better for Iceland even to file an honest bankruptcy than submit oneself as a perpetual debt-slave of the British and the Dutch. No demand seems too shameful for the Dutch, but I am sure Iceland has also supporters, e.g. among the Nordic countries.
Like Michael Lewis mentioned in another discussion, just let the krona float and sell more energy. With a realistic level for the krona, foreign investments and tourists will arrive, exports will increase and people will be busy. There will be pain, but it won’t last forever, unlike in the slave scenario provided by the UK/Netherlands governments.
Well, the President’s name will definitely go down in history now. This veto will generate a thousand times the international press than if he’d signed it. Maybe he was thinking ahead to his autobiography sales…
@Davros
>Offer the deposit insurance minimum and no more.
This whole issue **is** about the minimum!
Absolutely, Markku!