Bell Curve The Law Talking Guy Raised by Republicans U.S. West
Well, he's kind of had it in for me ever since I accidentally ran over his dog. Actually, replace "accidentally" with "repeatedly," and replace "dog" with "son."

Tuesday, January 05, 2010

Farewell to Iceland

So Iceland's President vetoed the "IceSave" package to repay some of the debts owed to the UK, Netherlands, and others. An LSE Economist made the odd comment that Iceland might go "bankrupt." Of course, countries can't go bankrupt. This means some sort of default might be possible. But there are still other possibilities.

Until 1949, Newfoundland was not part of the Canadian Confederation, but was an independent Dominion like NZ or Australia. In 1933, with Newfoundland unable to pay its debts, the British government essentially cancelled Newfoundland's independence and created a commission to pursue its constitutional future. After WWII, Newfounldand was offered a chance to return to independence ("responsible government" it was called) or continue the commission government for another 5 years. At length, a third option was added: joining Canada. In 1948, Newfoundland voted to join Canada (and have Canada take over its debts).

Could Iceland go the way of its North Atlantic neighbor and rejoin, say, Norway?

1 comment:

Raised By Republicans said...

Actually, Iceland's most recent colonial relationship was with Denmark, not Norway. Norway hasn't exercised sovereignty over Iceland since the 14th century and I would doubt that Norwegian kings ever had must more than nominal control anyway. Iceland you have to remember was settled to avoid Norwegian royal power.

But historical nonsense aside, Iceland has applied for membership in the EU and will almost certainly formally join the EU within a year or two. Iceland has been a member of the European Economic Area (an organization for countries to join the EU's free trade area without actually joining the EU). Of course, while aid is available, the EU will not assume the debts of its members.