Brussels, 28/01/2013 (Agence Europe) -The European Commission has taken note and will be analysing the implications of the ruling of the court of the European Free Trade Association on Monday 28 January 2013 which found in favour of Iceland against the European Commission. The court ruled that Reykjavik had not infringed EU savings guarantee rules by refusing to compensate British and Dutch savers when the bank Icesave's parent company, Landsbanki, went bust in 2008.
Stefaan De Rynck, spokesman for EU Internal Market Commissioner Michel Barnier, commented: “The Commission maintains its interpretation of the current Deposit Guarantee Scheme (DGS) in the EU. The deposit guarantee schemes in the 27 member states also apply in the event of a systemic crisis, and member states are responsible for ensuring that national deposit guarantee schemes effectively pay the compensation guaranteed by EU law within the whole single market”. The Commission welcomed the statement by the Icelandic government, saying that it is important to bear in mind that payments from the estate of the failed Landsbanki will continue regardless of the ruling of the EFTA Court. It is expected that the Icesave claims will be paid out in full by the actual debtor, the estate of the failed Landsbanki.
This case had been souring relations between Iceland and the two member states, the United Kingdom and the Netherlands, which had both fully refunded people holding their passports who had lost their savings but then claimed the money back from Iceland, which has applied to join the EU. In a referendum in 2011, Iceland rejected the reimbursement deal negotiated by the Icelandic government with the British and Dutch governments on the grounds that there was no legal obligation to bear the losses of a private bank (see EUROPE 10356). The Commission appealed to the EFTA court (Iceland is a member of EFTA).
In a press release, the Icelandic government said that Icesave was no longer an obstacle to Iceland's economic recovery. Icelandic Foreign Minister Ossur Skarphedinsson said that the country was in the right and its defence case in the longest case ever taken to the EFTA court would set an example for the future in the annals of European legislation. (MB/transl.fl)