Thursday

14th Dec 2017

Iceland puts former PM on trial over financial crisis

Iceland's former Prime Minister Geir Haarde on Monday (5 March) became the world's first leader to be put on trial on charges of negligence over the 2008 financial crisis.

Haarde, who was a premier from 2006 to 2009, is being accused of "gross negligence" in failing to prevent the collapse of Iceland's top three banks - Glitnir, Kaupthing and Landsbanki – all heavily involved in risky investments on the US real estate market.

Thank you for reading EUobserver!

Subscribe now for a 30 day free trial.

  1. €150 per year
  2. or €15 per month
  3. Cancel anytime

EUobserver is an independent, not-for-profit news organization that publishes daily news reports, analysis, and investigations from Brussels and the EU member states. We are an indispensable news source for anyone who wants to know what is going on in the EU.

We are mainly funded by advertising and subscription revenues. As advertising revenues are falling fast, we depend on subscription revenues to support our journalism.

For group, corporate or student subscriptions, please contact us. See also our full Terms of Use.

If you already have an account click here to login.

  • Icesave ad in London: Britain is demanding compensation for the bankrupt bank (Photo: mydogminton)

One of the main architects of Iceland's transformation from a fishing nation into a financial services hub, Haarde is also accused of failing to control the country's fast-growing banks and of having withheld information indicating the country was heading for financial disaster. He faces a sentence of up to two years in prison if found guilty.

"None of us realised at the time that there was something fishy within the banking system itself, as now appears to have been the case," Haarde told the Reykjavik court on Monday. He denied all charges and said that "only in hindsight is it evident that not everything was as it should have been."

Unlike EU countries, Iceland allowed its banks to go bust. The tiny nation of 320,000 people was forced to borrow €7.5 billion from the International Monetary Fund and other lenders, but its economy has since rebounded and was upgraded to investment status by Fitch ratings agency in February.

Icelanders in a referendum last year also rejected a deal aimed at paying some €4 billion in compensation to the UK and the Netherlands, whose citizens had put their savings in Icelandic banks. This has turned into a major irritant in Iceland's EU membership bid, which sees waning support among its people.

A February poll carried out by Gallup shows that only 26.3 percent back EU membership, down from 37 percent in January. A referendum on joining the EU may be held as early as next year, its government said.

Netherlands: 'No way now for Iceland to join EU'

Mixed messages on the status of Iceland's EU accession application are coming from different actors in the bloc. But a member of the Dutch government's Council of Economic Advisors has said that after Iceland's second rejection by referendum on an agreement intended to resolve a bitter banking dispute between the Hague and the small island, there is now "no way" Iceland will be able to join the European Union.

Iceland voters reject Icesave deal for a second time

Iceland's bitter row with the Netherlands and the UK over the loss of billions of depositors' money in a collapsed online bank has reached a new stage after Icelandic voters on Saturday rejected for the second time a deal to resolve the issue.

Facebook to shift ad revenue away from Ireland

Public pressure about low corporate taxes appear to have pressured Facebook to launch plans to stop routing international ad sales through its Dublin-based headquarters in Ireland.

Facebook to shift ad revenue away from Ireland

Public pressure about low corporate taxes appear to have pressured Facebook to launch plans to stop routing international ad sales through its Dublin-based headquarters in Ireland.

News in Brief

  1. Report: Pro-Kremlin trolls targeted Scottish referendum
  2. MEPs vote to allow phosphate additives in kebabs
  3. Babis government sworn in in Czech Republic
  4. Russia looks to crypto-currencies to evade EU sanctions
  5. Juncker embroiled in Luxembourg wire-tapping trial
  6. Kurz close to forming new Austrian right-wing government
  7. Ministers reach deal on fish quotas but overfishing continues
  8. UK parliament to vote on right to veto final Brexit deal

Stakeholders' Highlights

  1. European Heart NetworkCommissioner Andriukaitis' Address to EHN on the Occasion of Its 25th Anniversary
  2. ACCACFOs Risk Losing Relevance If They Do Not Embrace Technology
  3. UNICEFMake the Digital World Safer for Children & Increase Access for the Most Disadvantaged
  4. European Jewish CongressWelcomes Recognition of Jerusalem as the Capital of Israel and Calls on EU States to Follow Suit
  5. Mission of China to the EUChina and EU Boost Innovation Cooperation Under Horizon 2020
  6. European Gaming & Betting AssociationJuncker’s "Political" Commission Leaves Gambling Reforms to the Court
  7. AJC Transatlantic InstituteAJC Applauds U.S. Recognition of Jerusalem as Israel’s Capital City
  8. EU2017EEEU Telecom Ministers Reached an Agreement on the 5G Roadmap
  9. European Friends of ArmeniaEU-Armenia Relations in the CEPA Era: What's Next?
  10. Mission of China to the EU16+1 Cooperation Injects New Vigour Into China-EU Ties
  11. EPSUEU Blacklist of Tax Havens Is a Sham
  12. EU2017EERole of Culture in Building Cohesive Societies in Europe

Latest News

  1. Tusk migration note prompts institutional 'hysteria'
  2. Migration looms over summit, as Africa pledges fall short
  3. Brits in EU-27 are uncertain, alone and far from protected
  4. 2018 fishing quotas agreed - but Brexit muddies waters
  5. Medical HQ to spearhead EU military push
  6. Facebook to shift ad revenue away from Ireland
  7. EU renews glyphosate approval, pledges transparency
  8. Romania searching for EU respectability