Posts Tagged ‘Politicians’

‘Secret’ Icesave meeting in The Hague

Friday, January 29th, 2010

icesave1-03923944Iceland’s Finance Minister and the heads of the opposition Independence Party and Progressive Party will meet today with the banking ministers of the Netherlands and the UK.

The unusual meeting including Icelandic politicians from the government and two biggest opposition parties will take place in The Hague and centre on the Icesave issue.

The reasons for the meeting and its potential outcomes are being kept secret by all parties, but it is known that the Icelandic parties had agreed to request the meeting on Wednesday and were already on a plane to the Netherlands yesterday.

It is thought the secrecy surrounding the meeting might be at the request of the British and Dutch.

Some question why no representatives of the Social Democrats or The Movement are included in the trip; but as the Finance Minister, Steingrimur J. Sigfusson, is the leader of a governing coalition party (the Left Green Movement), that is thought to have been enough for the Social Democrats.

Details of the outcome of the meeting are expected later today and no later than tomorrow, Visir.is reports.

Denmark calls for Burka ban proposals

Wednesday, January 27th, 2010

burka-littleProposals into how best to prevent the use of the niqab and burka have been called for by the Danish government. The majority of Danes support the government’s stance against the wearing of the veils by Muslim women in the streets while Prime Minister Lars Lokke Rasmussen has said the dress code is not welcomed inside Danish educational institutions.

Speaking at his weekly news conference, Rasmussen said that he is waiting on new reports with suggestions on how to prevent teachers, students and public servants from wearing the burka or niqab, reports Politiken.

“Then there can be a discussion about how to rip the burka or niqab off women. Do we do it through legislation or by signalling our attitudes? Or do we do it by backing the leaders out in our institutions so that they take up the battle,” Rasmussen claimed, arguing that neither the niqab nor burka have any place in Danish Society.

However, a Copenhagen University report suggested that just three women wear a burka in Denmark while around two hundred, mainly Danish converts, use the niqab, although several politicians have queried these statistics. Rasmussen says that the number of women involved is irrelevant to the government’s stance.

“To spell it out: If there was a situation in which my son was being taught in the public schooling system by a teacher in niqab, I couldn’t care less whether this was a fate he shared with three, or three hundred classes in Denmark. It would be one niqab too many,” the Prime Minister emphasised.

Welcome to the new IceNews

Friday, January 22nd, 2010

icenews-smallIceNews has had a facelift and is now ready to provide a better Nordic news service than ever before!

Not only is the site more attractive now (we think so anyway), but it also has some great new features in the works which we hope you’ll notice over the coming days and weeks.

Look out for our dedicated editorial and comment section which will contain opinions and views from a wide range of people on a wide range of subjects. As well as IceNews editors, we will also feature articles written by politicians, businesspeople, names from the news and IceNews READERS! If you have something you want to say and you can encapsulate it into an interesting and informative article, please feel free to send it over to us at news(AT)icenews.is.

On the subject of commenting, please keep our new commenting guidelines in mind when writing user comments about articles. A link to the new guidelines will appear at the top of the homepage in the next few days.

If something about the new IceNews disappoints you (like the fact that four days of reader comments appear to have disappeared), please know that we are working hard to bring all the best bits of old IceNews over to the new site and hopefully you won’t stay disappointed for long.

As always, we would like to say thank you for reading IceNews. Every time somebody chooses to click on our site, we know it is a privilege and we are truly grateful for your support.

IceSave & Sexually Confused Air Hostesses: A Sample Of The Informed And Enlightened Debate Taking Place In Iceland

Sunday, January 10th, 2010

A Facebook discussion started yesterday

Status: KK Do you really think you know the IceSave agreement well enough to make a decision on whether it should stand or not? I hear so many people talk about it who I doubt have informed themselves enough about the issue.

IJ That is exactly right, what information do we “average people” have to form an opinion…

DL I agree with you wholeheartedly KK. I think so many people will vote in an uninformed way. I don’t know the first thing about this, haven’t studied the agreement and have no idea what it is about.

SLS My dear KK, this is all common sense, we sometimes tend to complicate things but if you study the issue then it is very simple. So simple that we can all understand it :-)

SLS And by the way we are not as average as the people who were going to make these decisions for us IJ. Don’t underestimate yourself.

KK Hehe you are funny SLS :-) But if this were so simple then it would not still be complicating things in Iceland. The difference between us and the politicians which make the decisions for us is that they are the professionals which we voted for to make the decisions on our behalf. We trust them to review all the documents and make an enlightened decision while we are doing our jobs. In that way we are average. We do not live this every day. Whether the politicians are doing their job wholeheartedly is another matter altogether. I suspect that most people do not have the time, interest, desire or mindset to study the issue well. How well do we know ECOFIN and Basel 2 for example.

SLS We can hardly avoid getting to know the issue as it is in our ears all day long and you cannot open any media without it being there. Not everybody voted for this people and I don’t trust them to take this sort of a decision for me. The reason this is taking such a long time is that there is not an agreement on it, whether it is complicated or not. And we all have social responsibility. As our city’s poet laureate said back in the day: Every unborn generation while the star shines, needs your help immediately today….because while wrong is done which you could mend, and people fought while you sat by, is the world’s plight also your fault.

SLS And for those who do not know what Ecofin and Basel are, there is always GOOGLE.

Ecofin is an independent investment management firm which specialises in the global utility, infrastructure, alternative energy and environmental sectors. The firm, which was founded in 1992, is based in London and has offices in New York, Hong Kong and Geneva.

The Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal is the most comprehensive global environmental agreement on hazardous and other wastes. The Convention has 172 Parties and aims to protect human health and the environment against the adverse effects resulting from the generation, management, transboundary movements and disposal of hazardous and other wastes. The Basel Convention came into force in 1992

FTP Totally agree with KK

KK Even if this is in the media 24/7 then it does not mean that people are paying attention. Even if you didn’t vote for the government then most of the people did. What other options do we have than representative democracy and majority coalition. Well spoken by the poet but unfortunately I think there are too few who are forming an enlightened opinion. You would have to google this in the first place!!!

RT Jesus Christ, I think my rental agreement is complicated enough. And I voted for people to represent me on these kinds of issues and I am paying them a salary to do so…

IJ I don’t think I am underestimating myself. I have not followed the Icesave issue enough in the media…one of the reasons is that I have a daughter who is very sensitive to these predictions of armageddon. If I were paid to study this then I would probably be just as fit as the MP’s in making a decision. But I am not.

UFE SLS, do you trust the media better to study the agreement, interpret it correctly and analyze in a simple, objective manner with all its pros and cons than MP’s to make the right decision after all the work they and their assistants have put into studying it and analyze thoroughly.

TR I trust myself perfectly to make an enlightened decision on this issue. Regarding our MP’s it unfortunately appears that their party’s position is more important to them than an enlightened decision.

KK TR, yes I trust you to make the decision given that you have studied it well. I just don’t think everyone else is. Unfortunately the parties’ grips on the country is too tight. Do we have a practical solution for that in the future?

SLV Besides everything else I have no interest whatsoever to study the issue and make an enlightened decision. I vote for people to go to Althing for that, to make decisions on issues which I am not interested in or have the capacity for. Additionally I am so sick and tired of this IceSave bullshit that most likely I will close my eyes and ears for this and not show up to vote.

EAH I so agree with you KK

JG Basel 2 actually revolves around European banking regulations, not transfer of hazardous wastes and their disposals. Google is apparantly not good enough.

And even if there are doubtful parts in the agreement, about Icelanders not having to pay, I think it is morally questionable. People we voted for, the ministers of the Independence Party, Geir, Arni Matt. and David Oddson maintained to British and Dutch supervisory authorities and governments that IceSave was backed by the state.

But obviously the referendum does not revolve around whether to pay or not (like I think SL and others believe) but the question is simply whether the deal is fair. Iceland’s responsibility was agreed upon this summer as a law in Althingi with a large majority and the president’s signature.

It might be possible to squeeze out a better agreement but I do not see that being more beneficial to us than getting these things clear so that we can start rebuilding the economy.

EAH :-) I totally agree that people should make an enlightened decision about a better deal or not, hadn´t read the other posts.

SLV Aye, aye JG, there are two SL’s on this post and I am the one who knows this is not about whether we should pay or not

Dadi This google example shows the madness clearly…like JG points out then Basel II is something very different from what google told SL and ECOFIN is too…it is not a private investment firm in the IceSave scope of things but the reference is to a meeting between European Union finance ministers on November 14 2008 and a report which followed…

But it is good that that is clear to everyone…

RT Great, the referendum will be based on information from Google…I wonder if people know that they teach whole courses on online information gathering?

KK Yes, I also understood this in that way EAH :-) I haven’t been revealing my position here, yes or no on the bill. JG and Dadi, thanks for the information…we who don’t study this must now trust that you are providing us with the correct information ;-)

SLV Facebook is the place where the nation’s heart beats…

SLS This sucks that we live in such an uninformed society where people are ready to go out into the streets to protest things they cannot bother to study!!! Sad to hear from my namesake that you are not interested and are just prepared to swallow anything because you don’t have the time (worst excuse in the world)!!!!!!

Good to get information on Basel and ECOFIN. Especially as that is what we are discussing here!!! But I am sure most people would study it well if needed (except for my namesake who doesn’t have the time)

My dear JG, I KNOW EXACTLY WHAT WE ARE ABOUT TO VOTE ON!!!! (and you know that I know too :-) ) and I just hope that in time we get MUCH MUCH better agreements than those being forced on us now and I a believe wholeheartedly that it will happen and that we will be better off afterwards and don’t lose out on waiting. Good to see from TR that some people still can afford advise on rental agreements. You are alright. Google is a fine search engine for most people and works well. I would recommend that people make honest and well informed decision based on their own conviction and interest. IJ, you are being paid to study these things because you have to pay this. The question is just how much. Those are your wages. I am not surprised that the little kid is worried when her mother can’t be bothered to study these things for her. You who are supposed to be her role model :-) We have lots of well educated people doing investigative reporting, bringing us all sorts of information, differently good of course and it is up to us to choose and reject like anything else which is offered to us in a modern society, for example what baby’s food and nappies are good for our kids, where should we send our kids to school and what is right and wrong, and for how long does this seem right and the other wrong????

We have to choose every hour of our life, and then it is up to us to prioritise what matters most at each given time. Unfortunately the facts are not always presented in news and we see more and more instances of journalists being wrong and do not gather enough information before feeding us the news and our opinions directed by badly informed people. I just hope that this little discussion here will get some souls who haven’t BOTHERED or wanted to inform themselves (because it is very simple) to get interested to be involved in decisions on their future and their offsprings future instead of wasting VALUABLE time banging pots and pans in Austurvollur. I hope those people make a informed decision about their future and their offsprings future and encourage others to do so. That is what I intend to do, because I don’t trust an old, gray-haired, uneducated, sexually confused air hostess to do that for me or my children and those I care about ( and it so happens that this includes you my dear JG :-) )

SLV Obviously my namesake has a lot of tolerance for those with a different opinion from her, but doesn’t seem sensitive to that…

But seeing as you don’t trust an old, gray-haired, sexually confused air-hostess to value this (despite her having been in Althingi for decades and should know a thing or two) – do you trust the people who work on the register in Bonus to do this, the CEO’s in the companies with millions in wages and the people who cannot hardly read anything but the gossip pages in the papers? Or maybe the good members of the opposition who change their mind every day? These are the people who are supposed to vote and do not have 13 or 15 months to involve themselves and examine and argue like Althingi. Me and KK are not examples of the dumbest women in the country and this is confusing to us, so how confusing is this to those less educated and understanding of complex issues. And what will the benefits be once this is accepted with a majority vote? Or rejected and we cannot get a better agreement, even worse? Then we have spent months and kronas which could have been put to better use on nothing. I have said so many times that I wish I was wrong. Of course I hope to wake up tomorrow and there is a will to cancel out IceSave or lower the bill seriously but unfortunately I have not heard anything indicating that possibility. Maybe I am too pessimistic and should inject more Pollyanna-drugs or borrow some of the fiery belief of my namesake above, but as I have to spend 200% of my tiem to try to hold on to what little I have got in the situation here like so many others of my countrymen…those who still hold onto their jobs and haven’t lost everything while Althingi argues over IceSave

Dadi An old, gray-haired, uneducated, sexually confused air-hostess?????

This discussion has obviously been raised to a more constructive plateu.

Dadi In lieu of that I suggest that every old person, gray haired persons, sexually confused persons and air-hostesses will be excluded from taking part in the national referendum as they obviously cannot be trusted.

IJ SLS you are punching below the belt when criticizing the way I raise my children which you have no knowledge of. It is unfortunate when these discussions start turning into personal attacks.

SLV My dear Dadi, have these discussions ever been on a high plateu? If it were so then this would have been solved a long time ago.
JG This was an incredibly rotten thing to say SL, prejudiced and wicked. You should be ashamed. It probably describes your party cohorts best. Are responsible for the economic crash but now they pretend to know nothing about it. And are just prejudiced.
Johanna Sigurdardottir might have been a little educated air-hostess 50 years or so ago, but since she has taken care of an fought for those who are less fortunate in our society and is therefore maybe better educated than anyone else to lead the nation…
And it is because of her work that people who lose their jobs are being taken care of as well as single mothers to name some. By the way SL, weren‘t you able to depend on single mother benefits when you were single with your infant son?
SLV Oops, is my namesake an Independence Party supporter.
SLS Hold on a minute JG. Have you forgotten who were in government??? Wasn‘t Johanna‘s party in government with the Independence Party??? Are the Social Democrats now whitewashed? Sure JG, you know how wicked I am :-) and that she is an old-yes, gray-haired-yes, uneducated-yes, air-hostess-yes. Badly worded and a little rough-yes, but all true none the less. I am not prejudiced against her, even if I don‘t like her way of governing things and don‘t think she is making the right decisions in certain matters. And of course she has matured and learned a few things in the last fifty years.
I thought you knew I don‘t know how to feel ashamed and I am not going to start with that right now :-)
My personal views are mine solely and I am responsible for them and I form them totally according to my own convictions, well informed and totally honest and I won‘t let others control them or influence them, unlike so many others who let themselves be controlled by crowds and orders. This is what you ought to know best, since we so often argue over a cup of coffee at my place.
That I got single mother benefits at that time is a whole different matter and not thanks to Johanna at all as it was so long ago and the benefits didn‘t go very far and only lasted six months at the time. These were and are the only benefits I have accepted from the Icelandic state, I have fortunately been able to take care of myself and I am proud of it. I am not keen on us chasing the Nordic countries with their social benefit systems which breeds losers. You know I have lots of experience from those systems as I lived in different places in the Nordic countries for twelwe years. But that is not what we are talking about here.
There are lots of foreign, well-educated people, doctors, MBA‘s etc. working the registers at Bonus who do not get jobs according to their skills but are proud and get by without abusing our social system. I personally know a lot of these people and have been helping them get ahead in this country. Yes and CEO‘s with millions in wages are totally able to survey the situation and make independent decisions. Check, I know them as well. :-) The people who cannot read are not necessarily stupid even if they might have dyslexia and being uneducated like Johanna as JG said correctly then it is not necessarily the academic way which suits everyone and people can be smart as hell without it. Check, know those people as well.
Fortunately our president didn‘t approve state guarantees on the IceSave bill and asked for a national referendum. Ef he hadn‘t then we would not have gotten this much attention from other European nations who are now pointing out new possibilities and new ways (which is POSITIVE for us) as is happening now and we would still be controlled by fear and minority complex towards other nations.
Dadi I am suddenly finding myself agreeing with the president that this is obviously a decision which is going to bring the nation closer together. A nation which obviously can be trusted to make an enlightened and sensible decision on this matter.
That being said I would like to note that I cannot feel much respect for people who use the term sexually confused and then try to justify it. It does not bear good witness to those who use it.
Secondly I want to bet my hat and my horse on that the policies which the Independence Party has offered us in the last twenty years will breed more losers than the Nordic system ever has (I am partly to blame for this tragedy because I have sometimes voted for the Independence Party but I would never think of blaming Johanna and Steingrimur for the mess our country is in).
Finally I find it outrageously funny to hear Independence Party supporters suddenly call Olaf Ragnar grimsson “our president”. Whatever happened to the “Pig in Bessastadir”?

 

Related posts:

  1. Silly Debate On IceSave
  2. Complexity Of IceSave Too Much For Althingi?
  3. IceSave: A Straightforward Matter?

Lithuania follows Latvian lead by expressing support for Iceland

Friday, January 8th, 2010

Vygaudas UsackasLithuanian Minister for Foreign Affairs, Vygaudas Usackas, has followed his Latvian counterpart’s lead. Both have now spoken out and defended Iceland on its decision to have a referendum in regards to the Icelandic bank “Icesave” bankruptcy and its debts to Great Britain and the Netherlands.

The British and the Dutch governments have both reacted strongly to the President of Iceland’s decision to call for a referendum due to issues of compensation, and warned that this could have an impact on whether or not they will support Iceland’s ambitions to join the European Union (EU).

On Thursday, during a telephone discussion regarding this issue with the Icelandic Minister for Foreign Affairs, Ossur Skarphedinsson, Usasckas called “the threats of international isolation unacceptable by some politicians and commentators”.

“I have expressed the view that we understand the Icelandic president has the constitutional right,” said Usackas.

“In my opinion, currently appearing threats of international isolation for Iceland by some politicians and commentators are not acceptable,” added the Minister.

In Usackas’ opinion, the European Commission should get involved with the dispute over Iceland and the EUR 3.8 billion compensation pay out for Great Britain and the Netherlands.

“In my opinion, it is negotiable that the European Commission should get involved in this political dialogue and economic-financial dispute between the two EU countries and Iceland, especially bearing in mind that Iceland is a candidate country for the EU, which is just now waiting for an opinion to start negotiations with the EU, ” Usackas concluded.

What Have You Done?

Thursday, January 7th, 2010

Yesterday I spoke to two grown up, salt of the earth people who had signed the InDefence petition. They were adamant that they had signed against Iceland paying the IceSave debt. Their understanding of the issue was that a national referendum would give the nation an opportunity to say no to paying the debt.

What could have been so hard to misunderstand about the InDefence petition’s opening statement?
“I challenge the president of Iceland, Mr. Olafur Ragnar Grimsson to reject the new IceSave bill. I think that it is fair to demand that the economic burden imposed on the Icelandic public and the future generations of this country will be put to a national referendum where the Icelandic nation gets to vote on it.”

The front page of Frettabladid also reveals an interesting turnabout. Sigmundur David Gunnlaugsson and especially Bjarni Benediktsson are now against a national referendum. They would prefer the bill to be revoked and new negotiations should take place between Iceland and the UK and Netherlands. Petur Blondal, the Independence Party MP who sponsored a bill a couple of weeks ago asking for a national referendum said yesterday that “MP’s have to sponsor bills all the time which they don’t necessarily agree on wholeheartedly” as he now claims that a national referendum would be less preferable to renegotiating.

What could have been so hard to misunderstand a few days ago when these very politicians sponsored and voted on a bill for a national referendum?

 

Related posts:

  1. No He Didn’t! President Asks For National Referendum
  2. The Icelandic Discourse in A Nutshell
  3. The State Vs. The People

Will He Or Won’t He?

Saturday, January 2nd, 2010

He has to approve the IceSave bill.

It is easy to justify it. Vigdis Finnbogadottir made a tough decision seventeen years ago when she went against her own conviction and her own political interest and approved the EES agreement. She justified it by saying that she had made the decision for future generations, not herself.

Olafur Ragnar only has to put aside his own political interests for the interests of the nation and approve the bill.

Even if hundreds of people who don’t want to take responsibility for what happened in Iceland in the last few years have camped outside his door this morning.

Even if more than 50.000 people, including children under the legal age have signed a petition asking him not to.

Because if he doesn’t then the consequences will only be beneficial to himself.

He will appease a lot of his critics. But leave the only semi-functional government available hanging, causing an almighty storm in Icelandic politics and delaying the assistance of foreign nations.

He has got to approve the bill. If he doesn’t, Iceland will be dragged even further down the drain. Which has been the objective of the Independence Party and Progressive Party since they found themselves in opposition.

Nobody wants to pay Iceland. But nobody wants to pay higher taxes either, and nobody wants less government service or worse education, or worse health care, or more expensive necessities or ridiculously expensive foreign trade.

But that is what those two parties have left us with, and the rebuilding cannot be delayed until it is convenient for their own political gain.

Hopefully the man in Bessastadir understands that.

Related posts:

  1. Progressives tighten their golden grip
  2. Priorities Of Icelandic Politicians
  3. The Filibuster Calendar

Denmark calls for stricter painkiller controls

Tuesday, December 29th, 2009

suicide-pills1The majority of Danes have declared that they are in favour of tougher painkiller laws, with a review of legislation that governs access to the medication being called for by the country’s politicians.

The calls for reviews on how painkillers are both bought and sold come as the rate of overdosing and poisoning continues to rise, says Politiken. The rate of poisoning cases that involve prescription pain treatment medication such as paracetamol has risen by 300 percent in the past decade, with the increase partially attributed to sales of painkillers being permitted in non-pharmaceutical outlets in recent years.

The Danish government made significant steps to limit the use of painkillers some years ago, introducing warning labels on all pill jars and campaigned parents to take precautions to prevent medication falling into the hands of children. There were also programmes that encouraged safe storage and for parents to identify symptoms such as school difficulties, new boyfriends and girlfriends and other social warning signs.

However, the easy access to painkillers, coupled with the high rate of psychological referrals among Danish students, has meant the issue has grown rather than diminished. Statistics reveal that emergency rooms now treat, on average, one female per day aged between 12 and 20 years of age for deliberately overdosing on painkilling medication.

The Liberal Party of Prime Minister Anders Fogh Rasmussen has admitted that its well-intentioned campaigns have failed. “We’ve tried with campaigns and information and we just have to admit that it hasn’t worked. The numbers are rising. It’s very unfortunate,” said the government’s Public Health Committee head Preben Rudiengaard. He also implied a capping system on purchases as in Sweden may be introduced.

Merry Christmas

Wednesday, December 23rd, 2009

Posting has been infrequent because of my end of term exams at the university. In order to keep the holiday spirit alive I have decided to refrain from digesting images and news of members of Althingi, other politicians and their like for the holidays.

Spare a thought for the poor Progressive Party MP who cannot go to Spain with her family for the holidays because of IceSave filibustering having made a Christmas session in Althingi necessary.

Seems like Santa Claus really knows who has been naughty and who has been nice. :-)

Related posts:

  1. Merry Christmas
  2. Merry Christmas from the Icelandic stock market
  3. The Filibuster Calendar

MP’s Bi-Partisan Hypocritical Relationship With Alcohol

Monday, December 21st, 2009

After a weekend of bloggers, politicians and journalists trying to tell me that it is quite alright for MP’s to have a drink and then go to work because they have just had “one” and “everyone does it”, I am still not convinced. Ogmundur Jonasson should have ordered water or a Coke before heading to Althingi, just like Sigmundur Ernir Runarsson should have earlier this year.

Icelander’s relationship with alcohol is as hypocritical as ever. Condemn ordinary workers for having “one” while on the job, but when CEO’s and MP’s do it they’ll be defended in the most bi-partisan manner imaginable.

The message they should be trying to send out is that alcohol should be enjoyed when you are not on the clock responsible for others welfare.

Related posts:

  1. Alcohol Sales Decrease By 14%

Danish politicians call for limits on banker bonuses

Thursday, December 17th, 2009

danish-kronerA move by the Danish People’s Party aims to ensure that favourable share options and giant bonuses for bank executives are done away with – even if they are from banks that did not figure in the government-sponsored bank crisis packages.

The proposals will be presented by the party during a status meeting among the parliamentary majority that had itself earlier adopted the rescue packages, reports Politiken.

“Developments in the past few years have shown that the banks are so entangled in the country’s economy that it is a matter for all of society when the banks get into trouble,” says Kristian Thulesen Dahl of the DDP. This is the main reason that advocates feel that limiting senior bank executives’ options for bonuses and share options as part of their salaries is deemed to be reasonable. “This possibility contributes to making management take too short-sighted risks,” said Thulesen Dahl.

In addition, the DPP has also said that it wants to impose restrictions on share options and bonus schemes on a range of other sectors with the wind industry included.

“Some companies basically live from specific decisions that the politicians make and which can increase their earnings,” Thulesen Dahl stated. He singled out the wind energy industry and with specific reference to Vestas CEO Ditlev Engel, said: “If Ditlev Engel’s salary is based on a quick increase in the stock price, then I understand much better why a company like Vestas is so actively trying to make the politicians take certain political decisions.”

The Danish Bankers Association has urged politicians to adhere to international recommendations which argue that long-term decision ramifications should determine bonus programmes; for example by calculating amounts paid over a period of several years.

Sailing Carelessly Through Unchartered Waters: The Absence Of Risk In Icelandic Business And Politics

Wednesday, December 16th, 2009
Were the movers and shakers in the Icelandic business and political elite so sure of not having to face any personal consequences of their actions that they were oblivious to the risks they were taking?
Apart from some marginal contexts, in the Middle Ages there was no concept of risk. Nor, so far as I have been able to find out, was there in most other traditional cultures. The idea of risk appears to have taken hold in the 16th and 17th centuries, and was first coined by Western explorers as they set off on their voyages across the world. The word ‘risk’ seems to have come into English through Spanish or Portuguese, where it was used to refer to sailing into uncharted waters. Originally, in other words, it had an orientation to space. Later, it became transferred to time, as used in banking and investment – to mean calculation of the probable consequences of investment decisions for borrowers and lenders. It subsequently came to refer to a wide range of other situations of uncertainty.
The notion of risk, I should point out, is inseparable from the ideas of probability and uncertainty. A person can’t be said to be running a risk where an outcome is 100% certain. (Anthony Giddens)
It could be reasonably claimed that before 2008 Icelandic politicians could be almost 100% certain that they could get away with just about anything. Volcanic eruptions had been more common since Iceland gained its independence in 1944,  than ministers or political leaders in state or local politics resigning. If they did, the most likely explanation given would be that they had failed their party somehow, not the nation. When Arni Johnsen, MP of the Independence Party was jailed for embezzlement early in the century, he served his time but promptly asked for a clean slate, a demand almost unheard of and extremely difficult to obtain, so he could run again. The party obliged and he is now back in Althingi. It should be noted that Arni did not resign voluntarily when he faced the charges for which he wsa eventually jailed. Gudmundur Arni Stefansson of the Social Democrats who did resign as a minister in the mid-nineties was afterwards offered a cozy job as an ambassador. The system took care of its own.
Likewise you could be forgiven for thinking that Icelandic business circles were corruption free. Bjorgolfur Gudmundsson was convicted in the Hafskip affair in the mid-eighties but his reward from the Independence Party turned out to be the gift of a newly privatized Landsbanki. After running that bank into the ground at a huge cost to the Icelandic taxpayer, Bjorgolfur and his son have not been charged with anything serious and their lawyers are hard at work making sure that their assets are left as untouched as possible and that only one of them can be made bankrupt, the older one. Instead of facing charges because of IceSave and bankrupting his bank, the younger one is scoring deals for new investments in Iceland.
Jon Asgeir Johannesson gets to keep 365 media and Hagar’s profitable part while dumping the debts onto the state banks. David Oddson bankrupted the Central Bank but gets to write his own history as the editor in chief of Morgunbladid. Hreidar Mar Sigurdsson is said to be involved with the Havilland bank which took over Kaupthing in Luxembourg, Bjarni Armannsson is investing the billions he made from Glitnir, Halldor J. Kristjansson is respectfully announced as a former CEO of a European bank in Canada. Hannes Smarason is claiming billions in Landsbankinn’s bankrupt wreck and so on and so forth. What risk? They are all well off and are not eating ramen for dinner or being kicked out of their homes (romantically transferred onto the names of their wives in the last couple of years). The Icelandic public is facing the consequences of their action, not the businessmen themselves.
The Independence Party understands this better than everyone else. The husband of Thorgerdur Katrin Gunnarsdottir, former Minister of Education and the party’s vice chairman borrowed hundreds of million from Kaupthing to buy shares in the bank. The debt was written off in the weeks before the crash. Her family’s risk, everyone else’s consequences. Her chairman, Bjarni Benediktsson’s participatipation in a real estate venture in Macau, where the insurance funds of Sjova were used to take immense risk on the company’s behalf did not turn out to have any risk invovled for himself and his family. He stood to gain massively if things would go to plan, but as the deal turned sour, every man, woman and child in Iceland ended up having to pay out 10.000 ISK through the state in life-support for Sjova. The controversial Fund 9 at Glitnir, where the chairman of the Independence Party’s congressional group, Illugi Gunnarsson on the board was bailed out by the taxpayers as well.
The leaders of the opposition today are people who took massive risk and were bailed out by their fellow citizens.
It is no wonder that Icelanders are facing the music. The political and business elites took massive risks without any consequences to themselves.

Were the movers and shakers in the Icelandic business and political elite so sure of not having to face any personal consequences of their actions that they were oblivious to the risks they were taking?

Apart from some marginal contexts, in the Middle Ages there was no concept of risk. Nor, so far as I have been able to find out, was there in most other traditional cultures. The idea of risk appears to have taken hold in the 16th and 17th centuries, and was first coined by Western explorers as they set off on their voyages across the world. The word ‘risk’ seems to have come into English through Spanish or Portuguese, where it was used to refer to sailing into uncharted waters. Originally, in other words, it had an orientation to space. Later, it became transferred to time, as used in banking and investment – to mean calculation of the probable consequences of investment decisions for borrowers and lenders. It subsequently came to refer to a wide range of other situations of uncertainty.

The notion of risk, I should point out, is inseparable from the ideas of probability and uncertainty. A person can’t be said to be running a risk where an outcome is 100% certain. (Anthony Giddens)

It could be reasonably claimed that before 2008 Icelandic politicians could be almost 100% certain that they could get away with just about anything. Volcanic eruptions had been more common since Iceland gained its independence in 1944,  than ministers or political leaders in state or local politics resigning. If they did, the most likely explanation given would be that they had failed their party somehow, not the nation. When Arni Johnsen, MP of the Independence Party was jailed for embezzlement early in the century, he served his time but promptly asked for a clean slate, a demand almost unheard of and extremely difficult to obtain, so he could run again. The party obliged and he is now back in Althingi. It should be noted that Arni did not resign voluntarily when he faced the charges for which he wsa eventually jailed. Gudmundur Arni Stefansson of the Social Democrats who did resign as a minister in the mid-nineties was afterwards offered a cozy job as an ambassador. The system took care of its own.

Likewise you could be forgiven for thinking that Icelandic business circles were corruption free. White collar crimes were rarely investigated or prosecuted, least of all those of any significant scale. Bjorgolfur Gudmundsson was convicted in the Hafskip affair in the mid-eighties but his reward from the Independence Party turned out to be the gift of a newly privatized Landsbanki. After running that bank into the ground at a huge cost to the Icelandic taxpayer, Bjorgolfur and his son have not been charged with anything serious and their lawyers are hard at work making sure that their assets are left as untouched as possible and that only one of them can be made bankrupt, the older one. Instead of facing charges because of IceSave and bankrupting his bank, the younger one is scoring deals for new investments in Iceland.

Jon Asgeir Johannesson gets to keep 365 media and Hagar’s profitable part while dumping the debts onto the state banks. David Oddson bankrupted the Central Bank but gets to write his own history as the editor in chief of Morgunbladid. Hreidar Mar Sigurdsson is said to be involved with the Havilland bank which took over Kaupthing in Luxembourg, Bjarni Armannsson is investing the billions he made from Glitnir, Halldor J. Kristjansson is respectfully announced as a former CEO of a European bank in Canada. Hannes Smarason is claiming billions in Landsbankinn’s bankrupt wreck and so on and so forth. What risk? They are all well off and are not eating ramen for dinner or loosing the expensive roofs from over their heads (romantically transferred onto the names of their wives in the last couple of years). The Icelandic public is facing the consequences of their action, not the businessmen themselves.

The Independence Party understands this better than everyone else. The husband of Thorgerdur Katrin Gunnarsdottir, former Minister of Education and the party’s vice chairman borrowed hundreds of million from Kaupthing to buy shares in the bank. The debt was written off in the weeks before the crash. Her family’s risk, everyone else’s consequences. Her chairman, Bjarni Benediktsson’s participatipation in a real estate venture in Macau, where the insurance funds of Sjova were used to take immense risk on the company’s behalf did not turn out to have any risk invovled for himself and his family. He stood to gain massively if things would go to plan, but as the deal turned sour, every man, woman and child in Iceland ended up having to pay out 10.000 ISK through the state in life-support for Sjova. The controversial Fund 9 at Glitnir, where the chairman of the Independence Party’s congressional group, Illugi Gunnarsson on the board was bailed out by the taxpayers as well.

The leaders of the opposition today are people who took massive risk and were bailed out by their fellow citizens.  They were not alone.

The political and business elites took massive risks without any consequences to themselves. They sailed carelessly through uncharted waters, and when the boat sunk with everyone aboard, they got away in the life-boats and blamed the reefs, the water and everyone but themselves. They were not only oblivious to the risks they were taking but have so far failed to grasp the significant consequences of their actions because the Icelandic people have failed to make them accountable.

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  1. Just Some Private Business Downtown
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  3. Jonas Teaching Business Law and Corporate Responsibility

Sense of Sovereignty: How national sentiments have influenced Iceland‘s European policy

Friday, December 11th, 2009
This paper asks why Iceland had until July 2009 chosen to participate in the European
project through the EEA and Schengen agreements but not with full membership in the EU. It
analyses if and how ideas on the Icelandic nation and its sovereignty affects the stance
Icelandic politicians have taken towards the European project. Icelanders’ struggle for
independence in the 19th century created a special kind of nationalism which gives
prominence to the sovereignty of the nation as a whole.
Economically, however, Iceland feels the same need as other European states to participate
in European co-operation, which can explain its membership in the EEA. The agreement
brings Iceland into the European single market, but at a cost: Iceland has de-facto agreed to
adopt the EU’s legislation within the boundaries of the agreement, and thus a transfer of
decision making and domestic governmental power to the EU. This dilemma, between economic
interests on the one hand and ideas on the sovereignty of the Icelandic nation on the other, has
created a kind of a rift between the emphasis on the free and sovereign nation and the reality
Iceland is faced with in the co-operation.
The inheritance of the independent struggle still directs the discourse Icelandic politicians
use in the debate on Europe. A strong emphasis on sovereignty has become the foundation on
which Icelandic politics rests. Participation in EU’s supra-national institutions falls, in a
way, outside the framework of Icelandic political discourse, which highlights Iceland’s
sovereignty and stresses an everlasting independence struggle.

This paper asks why Iceland had until July 2009 chosen to participate in the European project through the EEA and Schengen agreements but not with full membership in the EU. It analyses if and how ideas on the Icelandic nation and its sovereignty affects the stance Icelandic politicians have taken towards the European project. Icelanders’ struggle for independence in the 19th century created a special kind of nationalism which gives prominence to the sovereignty of the nation as a whole.

Economically, however, Iceland feels the same need as other European states to participate in European co-operation, which can explain its membership in the EEA. The agreement brings Iceland into the European single market, but at a cost: Iceland has de-facto agreed to adopt the EU’s legislation within the boundaries of the agreement, and thus a transfer of decision making and domestic governmental power to the EU. This dilemma, between economic interests on the one hand and ideas on the sovereignty of the Icelandic nation on the other, has created a kind of a rift between the emphasis on the free and sovereign nation and the reality Iceland is faced with in the co-operation.

The inheritance of the independent struggle still directs the discourse Icelandic politicians use in the debate on Europe. A strong emphasis on sovereignty has become the foundation on which Icelandic politics rests. Participation in EU’s supra-national institutions falls, in a way, outside the framework of Icelandic political discourse, which highlights Iceland’s sovereignty and stresses an everlasting independence struggle.

By Eirikur Bergmann

Read full paper here

Related posts:

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Paranoia :-)

Monday, December 7th, 2009

Wikileaks is unavailable at the moment.

A moment of paranoia filled my mind.

Three revelations in three days.

Icelandic politicians have managed to make us into a financial Cuba.

What’s next? Chinese internet censorship?

Or maybe not, just some paranoia over a server down :-)

Anyways, paranoia did not use to be a part of the Icelandic mindset.

Now it is an essential Icelandic quality.

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Bill Clinton could lead Iceland

Sunday, December 6th, 2009

dagblöðinThe publisher of Iceland’s DV newspaper and former aide to the Prime Minister, Hreinn Loftsson says in an opinion piece that the Icesave question will not be satisfactorily answered without the assistance of high-level and impartial international help. He believes Althingi and the Icelandic government should ask Bill Clinton to work for them as a mediator.

Loftsson says on DV.is that it has been sad to follow Althingi’s Icesave debates in recent days and weeks. He believes that with such strong and organised opposition from the parliamentary opposition parties and nearly 30,000 signatories to a petition calling on the President to veto the Icesave loan agreement if and when it passes parliament, further negotiations between Iceland, the Netherlands and the UK are the only way.

Unlike in the previous two rounds of discussions, this time Iceland should be represented by somebody like Bill Clinton, the former President of the United States – somebody internationally recognised and with a proven track record of being a good and impartial mediator. The mediator would also serve as an anchor for Iceland’s politicians who have largely been acting shamefully, using Icesave to score political points when they should be speaking to the world with a united voice, Loftsson believes.

Loftsson describes the bill currently being debated by parliament as salt to Iceland’s wounds which was deliberately applied when the Netherlands and the UK decided to reject some of Iceland’s proposed changes to the agreement in the summer. Iceland simply cannot tolerate the unfairness of the Icesave debt burden as it currently stands, he says.

The Drunk In The Pond

Saturday, November 21st, 2009

For people from outside Iceland it is probably hard to understand the world Bjarni Benediktsson seems to live in.

The chairman of the Independence Party who is normally afraid of speaking his mind under the watchful gaze of his predecessors says in an interview with Frettabladid today that he is pro-European. He claims that it is ridiculous to maintain that the EU is somehow an enemy to Iceland. He thinks that the possibility of a good outcome of negotiations with the EU is false hope at best.

But, he thinks it is “incomprehensible stubbornness on the behalf of the EU not to open the possibility for the EEA countries to enter the common currency, to adopt the Euro.” He thinks the EU’s stance on this matter is the equivalent to an attack on the EEA agreement. The same can be said about its attitude towards IceSave. He thinks this means that the EU states would nothing rather than destroy the EEA agreement, that they don’t want exceptions or differences. “It is just politics.”

Well, duh! After a decade in which one of the smallest states in Europe wreaked havoc in its financial sector, by utilizing the “exceptions” and “differences” granted to it by the EEA agreement, and allowed to do so by the Independence Party, why would Europe want to grant Iceland a safe haven without further participation? With great power comes great responsibility and all that. With save currency havens come responsibilities as well.

According to my information, Bjarni Benediktsson and other members of the Independence Party and other parties in Althingi should take a long hard look at themselves before accusing European nations of a malicious attitude towards Iceland in the IceSave dispute. From the Netherlands we hear surprised voices who wonder why Iceland has not sent delegations, ministers or MP’s to speak on the country’s behalf to politicians, savers and the public. If it had been handled by a real European country then the discussions might have been much more successful and agreeable.

Instead Althingi sought the foxholes it knew too well. A partisan argument which lasted for months, when the best solution would have been a bi-partisan agreement to go forth and speak united on the country’s behalf against the much more powerful nations which had been wronged by Icelandic banks and Icelandic bankers. Don’t forget that due to Landsbankinn’s reckless management of IceSave and the government’s inaction a large number of ordinary citizens, charities and communities in the Netherlands and the UK have lost huge amounts of money.

What the EU member states for all their faults do much better than Icelandic politicians is that they talk, discuss and find a common ground to agree on. Icelandic foreign policy mirrors its internal politics, where statements fly between trenches and parties looks for their own maximum gain instead of a common agreement. But as Bjarni would maybe say, “it’s just politics”.

Not that you’d expect much from the chairman who scolded the Nordic countries a month ago for not coming to a “family members” aid in a time of need. Completely unaware that the Nordic countries believe themselves to be a part of a larger, more agreeable family called the EU. Regarding the EEA agreement, it seems ridiculous to think that the EU should want to spend its efforts on maintaining it were it not for Norway’s oil. Iceland has so far just tagged along. If Norway’s oil were to disappear, they’d be in the EU faster than an Independence Party member could say “bloody foreigners”.

Bjarni Benediktsson is an icon of the Icelandic drunks who stumbled into freezing pond in the middle of winter and don’t understand why others are hesitant coming to their aid unless they promise to make amends.

The rest of us would like to try something different from the whine being served from his backyard.

Outdated Politicians and Exit Plans

Sunday, November 8th, 2009

Only 1/3 of Icelandic voters think that joining the EU is a good thing.

My friend from college who is visiting from EU-land just shook her head. She’s my age and she now owns six apartments, two of them outright.

She’s not been receiving higher wages than I, nor is she better educated, better connected nor does she have rich parents.

Her paycheck just doesn’t disappear every month like it does here. She’s been able to build a life for herself in a honest and decent way.

Three politicians past their sell-out date contributed nothing towards Iceland’s future when they raised their voices this weekend. Hjorleifur Guttormsson wants Iceland to exit the Schengen agreement, Jon Sigurdsson thinks the Icelandic National Church has been a bedrock in these trying times and Gudni Agustsson has a nostalgia for “good old family Sundays”.

At the university, one classmate is preparing to leave Iceland for Norway. Another one is not wondering whether to leave, but what his exit plan should be.

Iceland Will Say No To The EU

Thursday, October 29th, 2009

In every Nordic country the main sector has dictated whether the public votes yes or no on the EU. In Sweden and Finland the manufacturing sectors,  in Denmark the agriculture export industry and in Norway oil, fish and agriculture.

Their access to politicians is such that the public does not stand a chance once their propaganda campaigns get underway.

The fishing industry is winning the battle in Iceland. They’ve strategically bought and built up influential media companies and hogged the spin zone all year long with a message of evil foreigners, loss of independence and Iceland not needing anyone else’s help.

Iceland will most likely vote no on the EU. But the public discussion leading to the vote will not be one of facts and figures. It will be one of viewpoints, and right now it is much easier to convince people that everyone is against them.

An Icelandic Spin On Godwin’s Law

Tuesday, October 13th, 2009

Godwin’s Law: Godwin’s Law (also known as Godwin’s Rule of Nazi Analogies) is a humorous observation made by Mike Godwin in 1990 which has become an Internet adage. It states: “As a Usenet discussion grows longer, the probability of a comparison involving Nazis or Hitler approaches. The term Godwin’s law can also refer to the tradition that whoever makes such a comparison is said to “lose” the debate.

From Wikipedia

A friend was debating the merits of Icelandic politicians with a co-worker who is in his fifties. The older fellow was growing angry as the talk turned how badly Iceland had been run in the last couple of decades and indignantly asked the question posed by David Oddson fanatics, “Well, tell me who on earth is supposed to run this place if not David Oddson?”

My friend thought about it for two seconds then replied, “Well, Hitler. Hitler could run the place just like David Oddson”.

So David Oddson has in fact become a “mirror” on Adolf Hitler in Godwin’s Law. Because as stupid as the second statement is, it is not inherently more ridiculous as the first one”.


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