A bill that would finalise the island nation's repayment of the £3.2bn it owes to the British and Dutch governments after the collapse of Icesave looked as if it was about to go through;
The story of how that unravelled is one of intense and ham-fisted politics. It features an egotistical (noting the negative adjective) President sharply at odds with the will of his parliament, a furious Foreign Minister dismayed at the British response, and a serious failure of communication at the heart of the Icelandic government. But it's also a story of something simpler: a country that got sick of being told what to do.
Tuesday's political earthquake began in the office of President Olafur Ragnar Grimsson. The head of state had merely to sign the coalition's Bill to set the Icesave repayment scheme in stone
In London, the reaction was swift—and stern. (Including threatening Iceland EU membership, odd for Britian)
The politicians are upset with the President, and the public are upset with the politicians, and no one knows quite what to do with the bankers.(I bet there are lots of thought on what to do with the bankers)
Final say: "Iceland was literally being taken over by oligarchs," says Andri Snaer Magnason, the author of Dreamland: a Self-Help Manual for a Frightened Nation. "This news makes us more frustrated than angry. Now people just want to get on with their lives."
Reasons Iceland does not want to repay
-Icelanders refer to Jean-Claude Trichet, president of the European Central Bank, and Wouter Bos, the Dutch finance minister, who both have stated publicly that the rules on deposit insurance were not designed for the collapse of an entire financial system, such as Iceland saw.
- A lot of the damage done can be directly attributed to the actions of the British government, which brought about, or at least contributed to, the collapse of the Icelandic banking system. Should the British not solve the problem they themselves created?