David McWilliams: Iceland shows importance of putting people before banks
Published 06/01/2010 | 05:00
Yesterday the, largely ceremonial, president of Iceland stood up for what is right. He decided that it was not democratic for the Icelandic government to insist that the Icelandic people pay foreign depositors who deposited money in Icelandic banks that subsequently went bust.
The president refused to sign the parliament's bill, which would have penalised the Icelandic people for the mistakes of the executives of the Icelandic banks. He concluded that this was not reasonable as the banking mess was not the fault of the average Icelander. Iceland will have a referendum on the issue now.
This move implies that Iceland might jeopardise its access to IMF funds as well as definitely knock back its aspirations to join the EU.