Publication

The note provides an overview of recent developments in Iceland. It argues that Iceland has geared up for parliamentary elections with plans for a new constitution and EU accession. The banking crisis of 2008 has colored almost every aspect of Iceland’s politics and economy and changed the political balance of power. A major remaining issue from the UK point of view is the Icesave compensation dispute. The British and Dutch governments compensated depositors in Icesave accounts following the collapse of Landsbanki, but agreements to claim this back from Iceland were defeated in two referendums. The Icesave issue could affect Iceland’s current application to join the EU.