Eamon Gilmore (Dún Laoghaire, Labour)

Ireland's situation is quite different from that of Iceland which concerns a bilateral dispute between Iceland and the United Kingdom and Netherlands regarding the loss of private depositor funds guaranteed under EFTA rules and whether Iceland should recover such losses. Iceland's referendum concerned this issue specifically and was not linked to the programme of support which the Icelandic Government negotiated with the IMF. Iceland has confirmed that it remains committed to the IMF programme, which is progressing well.

The issue was best summarised in a recent editorial in The Irish Times which states:

Despite the two Icelandic referendum results its elected Government did not unilaterally abandon legal obligations but rather sought to negotiate the best available deal. The country is still bound up with the international system and seeks to enhance that position by joining the EU.

If the bilateral difficulties Iceland has with the United Kingdom and the Netherlands are not concluded to the satisfaction of those countries, the latter may veto their accession to the EU.

See this speech in context