Britain warned Iceland that it would be frozen out of the European Union after its President abruptly vetoed the repayment of a £3.6 billion loan.
Gosh, that is harsh, isn\’t it?
They\’ll just have to stay independent and free….and richer.
The thing is though that they haven\’t refused to pay. They\’ve just said that this is an issue of such gravity that the people must have their say.
A taste for that sort of democracy also being a bar to joining the EU of course.
Further, it isn\’t actually true that they owe in law this full amount. There are indeed international rules about how much deposit insurance they must cough up. And the ones that apply to the European area are, I think I\’m right in saying, something like €21,000 per account.
If the UK Government (and the Dutch) want to top this up to 100% of all accounts then that\’s their right. But they\’ve no right in law to go and insist that Iceland pay for this extra.
This is gonna be fun.