After the Icelandic Icesave internet bank collapsed in 2008, depositors in the UK and The Netherlands were compensated by their governments for an amount of € 3.8 billion. The Hague and London demanded the Iceland government to pay the money back. Reykjavik agreed to do so over a period of 15 years but the rate of interest to pay was considered as too high by a huge majority of the people (91%) in a referendum. Not surprising knowing that every household would have to contribute around €45.000!
A new deal between the three governments reduced the interest rate from 5.5% to 3.2%. But the President of Iceland refused to sign this agreement and used again his right to ask for a referendum. This time 60% of the Icelanders voted against the deal. President Grimsson hailed the result and said, that ‘the leaders of other states and international institutions will have to respect this expression of the national will’. But the finance ministers of the UK and the Netherlands were in a less celebratory mood and announced to go to court. ‘I fear a court case very much’ said Icelandic Prime Minister Sigurdardottir.
What do the people in Greece and Ireland think of the ‘vox populi’ in the north? They didn’t have any political correct chance to show that they also don’t like to pay for the mistakes of the financial sector and/or their governments. Now the Portuguese people come in for their turn. Nobody will ask them what they think about the €80bn bail-out for their country that will involve significant austerity measures and labour market reforms (read: loss of jobs), as well as a privatisation scheme to raise funds. Of course there will be elections in Portugal in June, the two big political parties, the outgoing Socialists and the (probably) incoming Social-Democrats started their campaign and have a heavy dispute about the nuances of the deal with the EU and the IMF. Ask the Portuguese voters directly what they think, give them a proper referendum!
