Iceland Suffers Democracy

Iceland's referendum decision provokes angry UK and Dutch response

Iceland's EU membership bid was seen as at stake on Tuesday after a shock decision by the country's president to block legislation on paying billions of euros to Britain and the Netherlands to compensate investors in the collapsed Icelandic bank Icesave.

In a televised speech, President Olafur Ragnar Grimsson acknowledged the strength of popular opposition to the deal among ordinary Icelanders, many of whom are questioning why they have to pay for the actions of their country's banks. His move means the issue will now be put to a referendum.

Last June, Iceland made an agreement with London and the Hague to pay them back €3.8 billion they used to compensate British and Dutch savers who lost money in October 2008 when their accounts with the online savings account Icesave were frozen, following the collapse of the parent company Landsbanki.

The president said an "overwhelming majority" wanted a direct say over the issue after a petition objecting to the terms of paying back the loan gathered the support of one fifth of the population.

Under the terms of the agreement the loan will be paid back over 15 years with interest, with estimates suggesting every household will have to contribute around 45,000 euros.

Feelings in Iceland have been running high, particularly after the heavy handed tactics at the height of the crisis used by Britain which invoked an anti-terrorism law to freeze the country's assets in the UK.

"It is the cornerstone of the constitutional structure of the Republic of Iceland that the people are the supreme judge of the validity of the law," said Mr Grimsson.

The president's decision, which comes just a week after the parliament narrowly approved legislation to pay back the loan following months of wrangling, has prompted an immediate and angry response.

Fitch, the international rating agency, downgraded Iceland's longterm foreign currency credit rating to junk status on the back of the move and called it "a significant setback to Iceland's efforts to restore normal financial relations with the rest of the world."

The Times newspaper reported that Britain's financial services minister Lord Myners said that if the referendum decision was allowed to stand then Iceland would be frozen out of the international financial system and would not be able to join the European Union.

"The UK Government stepped in to ensure that all retail depositors with Icesave were fully paid out, and now we expect the Icelandic Government to ensure that we are repaid that amount which Iceland owes us," he said.

The Netherlands has also reacted with anger.

"We are very disappointed about the decision," said a Dutch finance ministry spokesman, according to the Wall Street Journal. "Iceland has the obligation to pay back the money."

With recent polls showing that Icelanders would likely reject the terms of the repayment in any referendum, the country's EU path is also set to be affected.

Each member state may veto an attempt by another country to join the European Union. Iceland submitted a formal application for membership in July 2009. Once hailed as a probable EU member shoo-in, the banking situation as well as Icelanders more ambivalent feelings about joining the 27-nation bloc is likely to complicate the negotiation process.

Good.

Iceland Collapses, Sky Joins BBC

Iceland's coalition government collapses. Iceland, of course, had to go to the IMF last year for a bailout.

Haven't heard anything about the situation in Iceland on the BBC (apart from a little story about them sending jumpers to Immingham).

Sky have also decided not to air the DEC appeal for aid for Gaza.

Protestors should ask themselves: since when was it an obligation for a broadcaster to put out an appeal of this (or any) kind?

Eurostrain Claims First Victim and French Fop Poodled

Iceland's Prime Minister quits. If only The Spawn of the Manse had the decency to do likewise.

Unrest in Europe continues. Greece goes up again.

The Euro isn't working.

Aznar, former Spanish PM, expresses reservations about EU. A bit late admitting it now, mate.

Poor old Sarko the Eurofop gets poodled. Pity it wasn't a rotweiller.

Old Holborn aims to piss off the Dutch: they want to put Geert Wilders in prison for being a bit close to the bone with his little film.

Meanwhile our glorious government is trying to slip another nasty little trick through in the Coroners and Justice Bill: data sharing 'to secure a relevant policy objective'. Just the thing you want from a bunch of losers like New Labour. Write to your MP.

The UK is officially in a recession. At last the BBC can stop calling it a downturn.

Revolting Icelanders

Protests in Iceland.
Revolting Icelanders.
That's the way to do it.

Britain Bails Out Iceland Bank With £100 Million Bung

"The Bank of England is today providing a short-term secured loan of up to £100 million to Landsbanki, to help maximise the returns to UK creditors,'' Mr Darling told MPs. (Australian News).

Wouldn't it have been simpler (though a bit too honest) for our government to say they would directly cover the losses incurred to British customers by the collapse of Landsbanki rather than going round the houses like this?

First heard this briefly on the morning news yesterday (Monday); then it totally vanished, never mentioned on the main news at all. What a surprise.


42 Days

The Lords graciously chucked out the government's attempt to extend detention to 42 days. Surely they have something else up their sleeve? Read UKLiberty to find out what they'll do instead. Bastards.


Councils Turning Off The Lights

This has been bubbling along for a while but has only just come to the surface in national media. Some councils are considering turning off streetlighting at different times in order to cut costs (and also save the planet). Some have already begun trying it out.

Take into account the high costs of fuel, the stress on the national grid, etc, it's only a matter of time before lighting in public places and buildings becomes rationed. Blackouts are on their way.


Cleese On The Other Palin

John Cleese on Sarah Palin. I know he's lived in the States for a long time, but anyone else find his accent annoyingly transatlantic?