Radio Netherlands Worldwide

The article is wrong on several points. Iceland is not refusing payment. A negotiated treaty between Iceland, the UK and the Netherlands was ratified by President Grimsson on September 2 with a few clauses added by the Icelandic parliament. These were added in order to insure that repaiment would not bancrupt the country. The UK and the Netherlands rejected those amendments. The second treaty (the same but without the amendments) was narrowly pushed through Parliament on December 30. This second treaty became law today through the presidential veto (a nicety of Icelands constitutional law) and will remain in vigour if the bill passes a referendum, if not it will be abolished. In that case the bill from last August remains valid (where Iceland accepted payment on certain conditions).
For Iceland this is a choice between pest and cholera, but the country has always stood to its obligations (even if, in this case, it is doubtful that it is an obligation for normal taxpayers to pay for the errors of a private company).