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Iceland's population is a total of: 316,960
Now that's representative democracy at work.
Icelandic president rejects controversial compensation deal for Britain, Netherlands
Iceland's president has refused to sign a bill that would have the country compensate the Netherlands and Britain for losses in failed bank Icesave. Strong voter opposition tipped the balance.
Icelandic President Olafur Ragnar Grimsson has announced he will not sign a controversial bill to repay billions of euros in banking debt, instead calling for a public referendum on the matter.
The so-called Icesave bill would have Iceland's government pay 3.8 billion euros ($5.4 billion) to the Dutch and British governments, who reimbursed savers in their respective countries for lost money after parent bank Landesbanki collapsed.
Iceland's parliament narrowly approved the bill at the end of December, but more than 60,000 voters - about a quarter of the tiny country's electorate - have signed a petition opposing the bill and calling for a referendum.
"It has steadily become more apparent that the people must be convinced that they themselves determine the future course," Grimsson said at a press conference on Tuesday. "The involvement of the whole nation in the final decision is therefore the prerequisite for a successful solution, reconciliation and recovery."
Potential voter rejection threatens EU accession
Icesave was an online savings bank owned and operated by Landesbanki, which was among the victims of Iceland's October 2008 financial meltdown. Its high interest rates attracted savers, and ultimately about 320,000 Dutch and British citizens lost money through its collapse.
Repaying the lost money has been seen as a prerequisite for Iceland's acceptance to the European Union. Rejection by voters could impede the country's membership bid.
Opponents of the bill have claimed its demands are unrealistic and that taxpayers should not be punished for the bank's mistakes. The payouts would amount to about 12,000 euros for each Icelandic citizen.
acb/dpa/AFP/AP
Editor: Nancy Isenson
Iceland's president has refused to sign a bill that would have the country compensate the Netherlands and Britain for losses in failed bank Icesave. Strong voter opposition tipped the balance.
Icelandic President Olafur Ragnar Grimsson has announced he will not sign a controversial bill to repay billions of euros in banking debt, instead calling for a public referendum on the matter.
The so-called Icesave bill would have Iceland's government pay 3.8 billion euros ($5.4 billion) to the Dutch and British governments, who reimbursed savers in their respective countries for lost money after parent bank Landesbanki collapsed.
Iceland's parliament narrowly approved the bill at the end of December, but more than 60,000 voters - about a quarter of the tiny country's electorate - have signed a petition opposing the bill and calling for a referendum.
"It has steadily become more apparent that the people must be convinced that they themselves determine the future course," Grimsson said at a press conference on Tuesday. "The involvement of the whole nation in the final decision is therefore the prerequisite for a successful solution, reconciliation and recovery."
Potential voter rejection threatens EU accession
Icesave was an online savings bank owned and operated by Landesbanki, which was among the victims of Iceland's October 2008 financial meltdown. Its high interest rates attracted savers, and ultimately about 320,000 Dutch and British citizens lost money through its collapse.
Repaying the lost money has been seen as a prerequisite for Iceland's acceptance to the European Union. Rejection by voters could impede the country's membership bid.
Opponents of the bill have claimed its demands are unrealistic and that taxpayers should not be punished for the bank's mistakes. The payouts would amount to about 12,000 euros for each Icelandic citizen.
acb/dpa/AFP/AP
Editor: Nancy Isenson
Pressure from parliament
President Grimsson is under pressure from parliament to approve the plan, which was approved Wednesday by a 33-30 vote. According to InDefence, the group that organized the petition, over 61,000 people had signed the petition as of Sunday asking Grimsson not to sign the legislation into law.
President Grimsson is under pressure from parliament to approve the plan, which was approved Wednesday by a 33-30 vote. According to InDefence, the group that organized the petition, over 61,000 people had signed the petition as of Sunday asking Grimsson not to sign the legislation into law.
Now that's representative democracy at work.