The British government might stand in the way of Iceland gaining EU membership, should they not agree to bring the Icesave dispute to a close, ruv.is reports.
According to the Guardian, British and Dutch governments are determined to collect from Iceland the funds they reimbursed British and Dutch Icesave depositors when the Icelandic banking system collapsed in 2008.
The newspaper quotes William Hague, Britain’s Foreign Secretary, as saying that Britain might veto Iceland’s EU membership should they not honor their commitments.
EU leaders yesterday agreed to commence membership negotiations with Iceland. Nonetheless, in accordance with demands of Britain and the Netherlands, a petition was signed, urging Iceland’s government officials to settle the Icesave dispute as soon as possible.
Around 400,000 people in the UK and the Netherlands deposited funds into Landsbanki’s Icesave accounts. Government officials in London claim to have paid out 2,3 billion British pounds (approximately 440 billion ISK) because of these deposits and are looking to Iceland for reimbursement.