Main focus of Monday, March 8, 2010

Icelanders isolate themselves

In a referendum held on Saturday 93 percent of Icelanders voted against compensating billions of euros in lost British and Dutch savings. The rejection of the so-called Icesave law could torpedo support for the crisis-stricken country and its chances for EU accession, commentators write.

NRC Handelsblad - Netherlands

In saying No to the repayment of around 3.5 billion euros in compensation to foreign savers, Icelanders run the risk of international isolation, writes the daily NRC Handelsblad: "This puts the British and Dutch governments in a dilemma. What means do the two countries have at their disposal to bring Iceland to reason? ... Brussels thinks the debt conflict and accession negotiations must remain separate. ... But the question is how much pressure the EU can exert on Iceland at all. The Icelanders' willingness to have their country shunted to the margins points to an irrational boldness. ... The referendum outcome indicates dissatisfaction with the pro-European course of the Social Democrat - Green government led by Jóhanna Sigurðardóttir. If the prime minister fails to keep a steady hand on her government, Iceland could also shelve the negotiations with the EU." (08/03/2010)

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More from the press review on the subject » EU enlargement, » Fiscal Policy, » United Kingdom, » Netherlands, » Iceland

Diário Económico - Portugal

The Icelanders' decision to reject liability for the bankruptcy of Icelandic bank Icesave could have dire consequences, the business paper Diário Económico comments: "The 'No' was to be expected. But it is nonetheless astounding that an ultra-peripheral country that was on the verge of bankruptcy, that is experiencing a profound crisis and is dependent on financial help from abroad should challenge the international community like this. ... The compensation would cost 12,000 euros per inhabitant, which ... explains the defiant gesture of the Icelanders. [However] with their rejection they may have blocked the chance of help from the International Monetary Fund (IMF), antagonised the rating agencies even further and jeopardised their EU accession, which depends on approval from the UK and the Netherlands. The old Iceland still hasn't understood that the old rules ... no longer apply since our economy imploded." (08/03/2010)

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More from the press review on the subject » International Relations, » Domestic Policy, » Fiscal Policy, » United Kingdom, » Netherlands, » Iceland

Der Standard - Austria

The Icelanders' "No" to compensating British and Dutch investors should not be allowed to block the country's path to EU accession, writes the liberal daily Der Standard: "Following the emotionally charged referendum it will now be even more difficult to negotiate a fair agreement. But what that agreement looks like in the end depends on the three states involved in the matter. Neither the International Monetary Union nor the EU have any reason to make their stance contingent on the outcome of the negotiations and thus take sides against Iceland. ... In particular the EU accession process must be kept separate from the dispute. Highly developed Iceland should become a member as soon as possible; this would not only help the island state but also strengthen the Union. Unlike Greece Iceland is not demanding aid for the problems in which it has landed itself. All it wants is no interference in a complicated dispute." (08/03/2010)

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More from the press review on the subject » EU enlargement, » Financial Markets, » Europe, » Iceland
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