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Monday, 2 January 2012 - Iceland's president says he will step down in May |
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Hara-kiri, British style Related Topics World » Iceland's President Olafur Ragnar Grimsson watches ''Song of Freedom'' concert in Tallinn August 20, 2011. Estonia is marking their independence anniversary from the Soviet Union since August 1991. Credit: Reuters/Ints Kalnins REYKJAVIK | Sun Jan 1, 2012 12:39pm EST REYKJAVIK (Reuters) - Icelandic President Olafur Ragnar Grimsson, who twice called a referendum to bring down a debt settlement deal with the Netherlands and Britain, said on Sunday he would step down this year after 16 years in office. Grimsson said in his yearly televised New Year address that he would not run for re-election in May. One of the president's few formal powers is to refuse to sign a bill passed in parliament, which must then be put to a referendum. Grimsson is the only Icelandic president to have used the power. In March 2010 and then again in April 2011, Icelanders voted to rejected bills intended to settle debts owed to Britain and the Netherlands as a result of the 2008 financial crisis, when British and Dutch savers had money in Icelandic accounts frozen. "It is clear that both referendums gave the people of this country increased self-confidence, showed the way to increased democracy, and drew the attention and even the admiration of other countries," Grimsson said in a later statement. Nevertheless, the "Icesave" dispute has held back Iceland's economic recovery from a catastrophic banking collapse and cast a shadow over its application to join the European Union, on which negotiations started in June. All of Iceland's top commercial banks collapsed within a week in 2008, sending its currency and economy into a tailspin. Strict capital controls have held up new investment and the economy remains fragile. The estate of the collapsed Landsbanki made a first payment to the creditors last month and says the deposits will be repaid in full. However, the EFTA Surveillance Authority, which oversees Iceland's cooperation with the European Union, says it will take Iceland to court to try to force faster repayment. Grimsson's announcement follows a reshuffle of the centre-left government on Friday after traditional end-of-year talks between the government and the president. (Reporting by Omar Valdimarsson; Writing by Anna Ringstrom; Editing by Kevin Liffey) World Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Advertise With Us Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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