Icelandic parliament very likely to pass Icesave bill

The biggest opposition party in the Icelandic parliament has indicated that it will probably support the latest Icesave deal between Iceland and the UK and Netherlands.

Independence Party members on the Althingi finance committee say that if Iceland chooses to take the Icesave dispute to court instead of passing the latest trilateral payment deal, the debts of the country could increase massively if the verdict goes against Iceland. They recommend, therefore, that parliament should pass the bill. The Progressive Party committee member disagrees, saying that there is a greater probability that Iceland would win an international court case over Icesave than lose it.

The new Icesave deal is the third that the government has brought to parliament for debate and voting and this latest attempt has already had two readings in the Althingi parliament. It seems that a majority of MPs are in favour — something The Movement describes as “dangerous”.

The Independence Party finance committee members recommend passing the bill despite the fact that they continue to criticise the government’s work methods in having tried to force all three bills into law, RUV reported.

The Icelandic parliament made too many changes to the first deal so that British and Dutch authorities cancelled the deal. The second bill was passed by parliament, but sent to a public referendum by the president. The public overwhelmingly rejected the bill; partly because by the time of the vote, it was already clear that Iceland could achieve much better terms.