Did the Icelandic President's Veto on Icesave Damage Iceland's Image?

First: Is Iceland Really Not Going To Repay Icesave?

Yes, we will! Iceland will repay Icesave!

The meaning of the president's veto yesterday is not that Iceland will not repay Icesave. Iceland will though UK and Dutch politicians are trying to tell you different. What it means is that we will not accept the terms Brown, Darling and Bos have forced upon Iceland in the negotiations.

We may be a tiny little nation and Brown and Darling may think this is a brilliant way to find a foreign enemy to gain more popularity in the UK, their own little Falkland war. But we're no Falkland islands. We're the tiny little no-army nation that won three wars with the UK last century - over cod. In diplomacy we are an example of how a small nation can bring a large one down in a conflict. Unfortunately our last three governments in the last 12 months have been weak and fragile and the negotiation committee with the wrong attitude. The fact is, no EU nation except one could have withstood such a blow like Iceland took. The EU laws on this issue are flawed and the most normal way would be to test them in court, instead of being forced to accept something with the use of anti-terrorist laws. And that is what the people of Iceland want. That is why more then a quarter of Icelandic voters signed a petition to the president to veto the Icesave law.

A disaster for the Icelandic brand?

News in Iceland have been filled with reports saying that the president's veto has got world attention and unanimous disgrace. That is simply wrong. This has gotten little attention outside UK and the Netherlands, except in the Nordic countries. It is also wrong that it has all been negative. In the UK and the Netherlands a lot of it has been negative but that is due to political propaganda in those countries. There have also been quite a few supportive reports. The Icelandic government has been trying to correct the incorrect statements in the media explaining that we are not denying to pay, we are denying the terms and conditions.

(if the video doesn't show, you can check it out here)

In the short term, vetoing the law seems like a very bad decision. It delays big payments to Iceland from the Nordic countries and IMF, creates hostility in the UK and the Netherlands and complicates the EU application. But we can take it and in the long turn, I believe this is absolutely the right thing to do. Even Gerald van Vliet, a spokesperson for Icesave depositors in the Netherlands believes this was the right thing to do. And why would he do that? Because he wants the Icesave agreement to secure that they get their money back, not to be a punishment on the Icelandic people. The present Icesave agreement does not do that. It's also a question many ask themselves if it's realistic to demand from a nation of 300.000 people that have already lost much of their savings, to repay hundreds of thousands of depositors in UK and the Netherlands who put their savings into Dutch and British subsidiaries of Icelandic banks. This means 12.000 euros per inhabitant. We are seven in my household which means I should pay 84.000 euros "back" - money I never saw - and I've already lost all my savings because of the bank crisis. Fair? Maybe, maybe not. Realistic? NO! The Dutch people have actually started an online petition to support the Icelandic people.

The message the Icelandic president is sending out is that Iceland is not to be forced into anything. We are proud, independent people. We don't run from our legal obligations, but we demand a fair treatment from the international society. No matter how the British or Dutch politicians shout out. The least he could do is to allow the people to vote on it. I don't think that is a bad message to send out or that it will damage the image of the Icelandic people. On the contrary, if we think of the image of the Icelandic people as hard working, stubborn and proud vikings living in the world's oldest democracy, this just fits perfectly :)

People of Britain: Surrender and we will take our freezing weather back.
Best regards, Iceland. (From a friend on Facebook)

Cheers
Hjörtur

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[Jon]

http://www.youtube.com/watch?v=02hu-OQEns0