Iceland’s Prime Minister is in Brussels for talks on a row holding up international aid to the crisis-hit country and jeopardising its hopes of joining the EU.
Johanna Sigurdadottir is seeking a way out of an impasse over how Iceland will reimburse 3.8 billion euros owed to Britain and the Netherlands.
Icelanders are preparing to vote in a referendum on an unpopular bill laying out terms for settling
the debt linked to its banking collapse in 2008. The vote was forced after protesters petitioned the Icelandic president, urging him not to sign it into law.
Many taxpayers claim they are being unfairly left to foot the bill for mistakes made by financial firms as the country’s banks went under.
High-interest online Icesave accounts were among the casualties and British and Dutch savers lost out heavily. They were compensated by their own governments who now want the money back from Iceland.