Tomorrow is the first national referendum Icelandic citizens have been allowed to participate in by the political elite since the conception of the republic in 1944. By all measures, this should be a happy day for democracy in Iceland.
But instead it is not a cause for celebration but a large milestone in the farcical power play which has taken place between the four largest political movements in Iceland since 1944.
Yes, a farce. “Isn‘t that what this whole thing really is”, asked a Dutch journalist yesterday after surveying the scene? It is a sad day.
The media has a lot to answer for
The media has a lot to answer for. Instead of allowing people like law professor Bryndis Hlodversdottir and political science professor Svanur Kristjansson to explain to the nation why this isn’t good democracy, the media has instead handed the microphones to red-faced, unbalanced Sigmundur David Gunnlaugsson, chairman of the Progressive Party whose political career has revolved around kicking up as much mess as possible around IceSave. It makes for a better TV than a balanced approach and it creates pressure on the government he opposes.
In his wake you can see the pressure group InDefence whose members include Progressive Party players and someone who was recently kicked out of the Central Bank for bypassing the currency restrictions which are supposed to be holding our economy together. And the rabble rousers from the Independence Party who are glad the spotlight isn’t on them.
Why isn’t the referendum good democracy? Well, the question is useless as there is a better offer on the table. The information to make an enligthened decision have not been easily available. And the consequences of a yes or a no are unknown. And how do you vote on whether your nation should pay its debts or not? Of course nobody wants to pay. But that is what three governments have now promised Holland and the UK that we are going to do. The rest is just details, isn’t it? And we can argue endlessly over details can’t we? Did the government or the opposition ever tell us what their goals were regarding payment terms, interest rates and such? What exactly is an agreeable agreement to Iceland?
So far, no details have been good enough for the opposition, which includes the Independence Party who would have agreed to a less favorable agreement a long time ago if only they were still in government. And to some people it seems like any deal is a bad deal because then the spotlight will turn towards other matters? Could it be that Iceland’s enemies are not abroad, in Amsterdam or London but actually in Reykjavik, Blonduos and Akureyri? So far, the problem hasn’t been about Iceland’s democratically elected government not reaching an agreement with the UK and Holland. It has been about not reaching an agreement with the opposition. The opposition, coupled with a few Left Greens who think that Iceland’s future as a self sustainable country in the vein of Cuba is viable, has stalled, filibustered, argued and kicked up a storm at every turn. Some academics have suggested that every month stalled has cost Iceland 70 billion ISK or so, a large chunk of IceSave. Are the small details really worth it or are more sinister forces at work here?
For the opposition’s part, the longer this thing drags out the more turmoil there will be in Icelandic society. And who will the voters blame? Well, of course the people in government. And then the way is clear for the opposition to resume power. And don’t think for a minute that they would not try to negotiate with the Brits and the Dutch.

Olafur Ragnar Grimsson. The cheerleader of the business-vikings who raped and plundered Iceland. (Finnish president Halonen not included)
The political elite has a lot to answer for
The political elite has a lot to answer for. Olafur Ragnar Grimsson, a lame duck president, paralyzed by his constant smooching with the money-men of yesterday, has suddenly turned the tables somehow to making some foreign journalists believe that he is at the forefront of a fight against capitalism. Don’t be fooled. It was just about his own legacy, and the trouble the four parties have created by constantly refusing constitutional reform which would sharpen his role and responsibilities. They never did because they don’t want to limit their own powers. It is a diabolic merry-go round.
The people have a lot to answer for
The people have a lot to answer for. We have voted for bad politicians and we have voted for a bad system. And we have been fooled into all sorts of bad positions because we are hapless joiners who too easily take sides with demagogues and snake-oil salesmen to easily. The mob has allowed the political elite to maintain its grip on society. Recently it has mindlessly signed petitions for InDefence and Thjodarhagur, honked horns with a slightly facist New Iceland and gathered at an Anthill for a Nation’s Meeting without asking who is behind all these groups and what is their purpose. And now it will flock towards a referendum where one of the options is out of the question, and in many cases not having a clue what they are voting for. Iceland not paying any debts. Count them in.
So what will happen tomorrow? A big no vote of course. And what does it mean? Some people think it is a message of some sort which will improve the negotiating position of Iceland. But really?
Three likely scenarios
a) The government keeps going and attempts to find a solution with the UK and Holland on the grounds that “people are against paying these debts”. Why would the UK and Holland see that as an argument? Those countries can wait. The IMF loans could wait as well. The government is backed into a corner and has little options but to resign.
b) The government keeps going and attempts to find a solution with the UK and Holland on which the opposition can agree to. Which is unlikely, because the opposition can wait until things are so tight that it can assume power on a wave of discontent.
c) The government resigns. The current opposition resumes negotiations and quickly finds an “acceptable deal” with minor adjustments which they will take credit for. The new opposition kicks up a storm. Then what? A new national referendum on that deal?
It is really a whole big mess. And it does not make one proud of being an Icelander. What is currently taking place in Iceland has nothing to do with democracy. It is cold hard realism which has everything to do with power and money. Consider who is leading the opposition. Two, middle aged men who have become filthy rich through the cosy relationship between politics and business in the last few decades. They want people to think that this is about democracy, independence, justice and standing up to the man.
And the real enemy within escapes the attention meanwhile and grows stronger from the strife.
It is a sad day. The first national referendum of the republic since its beginnings and it is for the political elite, by the political elite and benefits the political elite. There could have been so many other more apt matters and issues for the nation to deliberate on, the fishing quota system, support for the war in Iraq, constitutional reform. But no, instead we get this farce.
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icelandbob
1 year ago
THIS…. is why you are brilliant in my eyes. Probably the best encapsulation of why Iceland the society is so rotten at the moment.
And yet everyone just goes on saying “I am innocent! I wasn´t one of those bankers or politicians”
Ho well, bring on voting day…
Vilhjalm A.
1 year ago
Yes, another great post, Dadi.
However, I get the impression from the Icelandic internet that the referendum is also about other things and not just an up or down vote on the present government, such as a general expression of anger about everything that has happened in the past few years, an attempt by ordinary people to have some say about something, and a hopeless sentimental expression of national pride and independence, and hostility towards foreigners or large financial institutions.
Here’s a good post from one of the boards by a poster named Caramba:
“Þjóðaratkvæðagreiðslan á laugardaginn er ekki bara skrípaleikur, hún er svo ævintýralega vitlaus að enginn maður með fullu viti getur tekið þátt í henni nema hann sé að senda einhver önnur skilaboð en þau sem felast í sjálfu nei-inu. Og það eru sjálfsagt margir að því.
Í fyrsta lagi er aðeins einn valkostur á kjörseðlinum, og það er NEI. Já er ekki inni í dæminu því þú segir ekki já við samningi sem er verri en sá sem þér stendur til boða.
Fjöldinn allur af fábjánum mun flykkjast á kjörstað til að krossa við NEI, uppblásnir af þjóðrembu og sjálfsréttlætingu, í þeirri trú að þeir geti þannig losnað við Icesave-reikninginn. En þeir eru þó enn fleiri sem fara á kjörstað til að krossa við nei-ið í þeirri von að sitjandi ríkisstjórn hrökklist frá og hægt verði að halda á vit nýrra gullgrafaraævintýra undir stjórn pabbadrengjanna tveggja, sem sjálfum er stjórnað af harðdrægustu hagsmunaklíkum í Norður Evrópu.
Svo eru þeir sem fara á kjörstað og krossa á eina mögulega reitinn til þess að senda umheiminum skilaboð. Þetta er liðið sem heldur að þessi atkvæðagreiðsla geti leyst ímyndarvanda Íslendinga, sýnt heiminum að við látum ekki bjóða okkur hvað sem er, við höfnum heimskapítalismanum og illsku fjármálamarkaðanna, ennþá býr í okkuir víkingseðlið o.s.frv. – þótt augljósa staðreynda sé sú að við erum ennþá eitt gráðugasta efnishyggjuþjóðfélag á byggðu bóli.
Allir sem fara á kjörstað á laugardaginn eru fífl, sama í hvaða tilgangi sem þeir gera það. Heimskulegur rembingur af þessu tagi kallar skömm yfir þjóðina og að endingu hreina vesöld. Við erum að þessu leyti í sporum Bjarts í Sumarhúsum nema Bjartur tók örlögum sínum eins og maður, en hér munu upphefjast kveinstafir og harmavæl sem aldrei fyrr þegar afleiðingar þvermóðskunnar blasa við síðar meir. “
Dadi
1 year ago
True Vilhjalm A. It is pityful that the whole nation wants to play the role of a victim. And the election ends up being about this: http://www.economicdisasterarea.com/index.php/features/the-national-referendum-not-about-icesave/
BTW: Did you hear what Steingrimur J. said at a press conference this morning? He wanted to leave the nation with the thought of imagining how difficult it is to negotiate when there are people on your own team who are against negotiating.
Realpolitik!
National Referendum: A Sad Day For Democracy in Iceland | iceland today
1 year ago
[...] Read more from the original source: National Referendum: A Sad Day For Democracy in Iceland [...]
Boggi
1 year ago
Dadi, So are you saying that it was better to just accept the irrational and insane deal that parlament passed(forced)in Dec? your post is very interesting in relation with the state of icelandic society it acctually describes it very good, but you as the “oposition” fall into the same, you go against the oposition, and even trash them as hard as you can just to support the goberment that you accept, I belive everybody does the same, by the way, I find it estrange that you dont think that they are all and the same, there is no such a thing as opposition in iceland, the socilas were in power when all this happened, and they are still in power today, but now with the greens. Now If you belive that this goberment is different, well, they got you good. And dont get me wrong I do not support the previous goverment but this one is no better acctually its the same.
Dadi
1 year ago
Boggi: Nowhere did I say that I think it would have been better to accept the previous agreement. Of course I don’t want to pay the IceSave debt. No one in their right mind would like to.
But that is exactly what the three past governments have told the Brits and the Dutch that we are going to do. So we have to negotiate. And the talk about a “better deal” is a diversion. The one on the table had a provision about Iceland being able to pay it up if it found a better one elsewhere. You negotiate, then renegotiate once your position is better.
Please don’t assume that just because I am against undemocratic and farcical national referendums that I just want to pay this debt incurred by Landsbankinn. And as you are a regular participant on this blog you should know that I am not too thrilled about any of the four parties. They got us here and they need to be shaken up.
On that note I have to save a special mention for the party which has dominated Icelandic politics for decades. Even if the Social Dems were allowed a piece of the pie for two years, the Independence Party’s role is massive in comparison with everyone else.
gerdur palmadottir
1 year ago
The general public of Iceland is up against the wall, but so is the general public in most countries. People in Iceland have banged the pots and the pans. They oppose,they advice, they are calm, they are sad, they are hopeless in the situation. People go and vote, that is the only weapon available, even if it is not clear what the vote will bring.
There has not been a question of not paying, but the question remains, who is responsible for this Icesave mess, isn´t it the responsibility of all the three countries, Iceland, UK and Holland, if the fair way is tha the public is to pay, let devide the total between the public of all those three countries. So far it is not even divided on taxpayers in Iceland, it is on each and every person now and for the future to come, how on earth can that be justified?
The problem in Iceland is far bigger and even more complicated than Icesave, the whole insane world is committing harakiri in the name of greed and lack of respect and compassion for each other, so in that field we are international, finally the whole world got to find a solution of sharing of disappearing.
Pálmi Gunnarsson
1 year ago
Innilega sammála þér – sorgardagur og sóun á góðri þjóðaratkvæðagreiðslu
JP
1 year ago
Dadi and others,
Let’s take it with some humour.
Eurozone and Euro as a currency has some problems, so it is very much recommended for Iceland to delay everything as much as possible, allowing Euro the time to drop to the value of ISK.
In such a case, all debts will be manageable
Richard D. Zink
1 year ago
Please, it is with all due respect that I offer this comment. And, please know that I am an American friend of Iceland. With this, I am only acting as a Common Law: ” Voice from the dark.” I welcome you to take it or leave it. But, during my many trips to Iceland as a tourist this past decade, I too, noticed things that didn’t make sense on the surface. I watched the growth, the hight of status, and then the fall with as much confusion, denial and sadness as it seems the average Icelander has. What I seem to see, more than anything is confusion and hurt. Maybe even insult. To me, it is justified. The average Icelander should be angry.
What I don’t agree with, is this: That this is a bad day for democracy.
This, I am sure can be a bad day, if that is what is desired. But, more than a lot of peoples, the voice of Iceland has a ring of unity.
This might be a clarion call for the Republic of Iceland to stand up, shake the dust off itself and go forward with a new resolve. It could just be that kind of day that Iceland needs to have happen.
Icesave, stunned me, some of my friends here in America, and I am sure many people around the world. In any simple examination, it fails the test of decency. What would you think, if an officer of the law presented you with a writ that said you owed an usurious amount of money that your Grandfather indebted himself with? Wouldn’t you be stunned? Further, when asking why you should have to pay it, the officer informs you that your Grandfather assigned you as a co-signer to that debt. And after all, you did enjoy his house, from time to time. Is that a bad analogy? I know in the United States, and I would expect in Iceland, too: that is a breach of the statutes of fraud. No court in their right mind would hold you to your unknown, fraudulent debt. Especially under those circumstances. Bad analogy? I don’t think so.
What to do? Maybe a review of your constitution might be in order. Maybe some gray areas, or some weak laws might have let this happen.
Regardless, start at the top, with quality legal minds and review the constitution. Maybe some parts of it were skirted illegally. This is the time to tighten up your ship of state, so that it floats a little higher in the waters of state. Even if you have to, use the law to break up what obstructs you progress to an Iceland that your children would want to come back to, and be a part of. It sickens me to see the flight of good, solid and very intelligent young people from Iceland.
I hope it can be brought to a stop, too.
Again, this is only my opinion. Only offered for you to consider. Please take no offense to any of it. And, last, I apologize for not being able to write this in Icelandic. Maybe some day….
I just care about my home away from home. And I am hoping that this will be a good day.
Thanks…takk.
inger le gue
1 year ago
JP:
This is the solution proposed by some Dutch guys:
http://thedutchiceland.com/
Dadi
1 year ago
JP, you sound like an Icelandic economist
inger le gue
1 year ago
And this is where people start claiming parts of Iceland ‘before somebody else does’:
http://thedutchiceland.com/index.php?page=claim-a-piece-of-land
Just to be sure I claimed my own house in Reykjavik
!
Dadi
1 year ago
And now, the day after Sigmundur David and Bjarni have revealed their true intentions of the national referendum… they are asking for the government to step down and new elections.
They got what they wanted!
Andrew
1 year ago
http://thedutchiceland.com/
it is in very poor taste. I used to live in Berlin when the Wall was up. Dividing into sectors? No thanks, not even making jokes about it
So, can the present government survive? More importantly can a sensible agreement be reached quickly. With elections soon in both Holland and the UK, an agreement now could be a good idea. Mixed signals coming from the UK and Holland, Alastair Darling sounded quite conciliatory (makes a pleasant change!), the Dutch sounded more bellicose. Don’t forget there are political pressures there too.
“democracy is the worst form of government, apart from all the others” . Winston Churchill
First Iceland, then the World | Dailycensored.com
1 year ago
[...] is’, asked a Dutch journalist yesterday after surveying the scene? It is a sad day.’ March 5 @ Dadi [...]
First Iceland, then the World « COTO Report
1 year ago
[...] “Yes, a farce.’Isn‘t that what this whole thing really is’, asked a Dutch journalist yesterday after surveying the scene? It is a sad day.’ March 5 @ Dadi [...]
Michael Collins
1 year ago
Great article and outstanding blog. I just published a story on the struggle here for U.S. readers. I included two quotations from your blog. Keep up the great fight and blogging. It’s very helpful in understanding what’s actually going on.
“First Iceland, then the World”
The Agonist
http://agonist.org/iceland
The Daily Censored
http://dailycensored.com/2010/03/07/first-iceland-then-the-world/
Keep up the great work and thank you for helping educate the global
elite that it’s not gong to be easy to take everything from everybody;)
Michael Collins
snowball
1 year ago
the worst thing about dutchiceland would be all the dutch caravan tourists on the ring road hehe
First Iceland, then the World
1 year ago
[...] is’, asked a Dutch journalist yesterday after surveying the scene? It is a sad day.’ March 5 @ Dadi [...]
A Monday potpourri: UC, Hedges & Iceland « eats shoots 'n leaves
1 year ago
[...] referendum on a proposed settlement with Great Britain and the Netherlands a meaningless sham, noting that negotiations for a modification were already underway. Others were more [...]
First Iceland, then the World :: NWO TV
1 year ago
[...] “Yes, a farce.’Isn‘t that what this whole thing really is’, asked a Dutch journalist yesterday after surveying the scene? It is a sad day.’ March 5 @ Dadi [...]
JP
1 year ago
Dadi, I am still wondering what do you really mean by telling such a things that this referendum is a sad day for democracy and so on.
I think that you as most of Icelanders are too deep in the inside matter of Icelandic political life and that is why your point of view is somewhat too detailed, thus for international use too unclear.
People who in fact are foreigners, but which are living in Iceland and are touching the Icelandic problems with their own hands seems to have a bit wider perspective, because they are also aware of the traps of EU and problems (or successes) of their motherland.
This referendum and its score shows all the world that Icelandic citizens are not willing to pay for the debts of private bank and THAT’S ALL WHAT REALLY MATTERS.
Nobody abroad understands the intricacies in Icelandic internal political life – the differences between parties like Left Greens, Progressives or Bloggers are of total unimportance to the international public opinion and too complicated to be understood.
But if the motion of Icelandic Parliament would have been carried and agreement was signed – it would have been a signal to the world that Iceland is a country of stupid sheepish citizens willing to pay for any failed business if somebody would shout at them loud enough.
The game started by Mr Grimsson and InDefense could be risky, but let’s say it honestly – ISN’T IT WORTH IT ?
Look at facts – Brits and Dutch offered a discount in interest rates after the referendum – something that this cowardly acting government does not achieve.
And let’s wait for the next outcome. So far all fears have only the shape of words – I think that Nordic countries and IMF are also somewhat suspending the aid to achieve more dramatic effect and test the coldness of blood of Icelanders.
Even if the aid fail and Iceland is alone with its problems – let’s face it. At least it would be also a sign that there is no hope for aid from the outside world and WE (habitants of Iceland) have to work our way to the survivable future.
Dadi
1 year ago
JP you might be implying that all is fair in a crisis?
My post was about this not being good democracy. The actions of ORG and InDefence might work to get something done, but I am of the opinion that marginally lower interest rates might not cover the damage done by delaying an agreement.
And I seriously question that the president and InDefence’s motives had anything to do with love of democracy, but rather cold hard interests of power and money for themselves (maybe a legacy for the prez instead of monetary gains).
When you do a national referendum, the question and its consequences are not supposed to be ambigious and open for any interpretation. It is also bad democracy to ask a question where one of the two answers is out of the question.
You might think this is somehow good democracy just because it has been given the name “national referendum”, but I dig a lot deeper and say that if it walks like a duck and quacks like a duck then it most definitely is something which smells fishy in Icelandic politics and has everything to do with our political elite’s interests instead of our own.
You might want to consider that national referendums are quite popular in dictator-ridden nations to express the will of the “people”.
Andri
1 year ago
Daði loves to thrash the opposition, from day one he has had a grudge against the new party in parliament calling them loonies and what not. Thats why I’m not surprised reading the above, which is pretty much all by the book, the Social Democratic Book thats is. Daði is scared and if it was up to him Iceland would probably be stuck with the first IceSave deal. Why? Because everything is about being respected by other countries even if the means taking a bad deal. The Social Democrats are quickly turning into the IP. They don’t tolerate criticism, specially from outsiders who they call idiots if they offer an opinion not suited to there liking.
Thats how I feel reading this post, everyone is an idiot for wanting a fair deal.
Dadi
1 year ago
Thanks Andri for your input. But not for associating me with the Social Dems. It’s been longer since I voted for them than the Independence Party. And I did vote for the new party in Parliament.
I have heard a lot about fair deals on IceSave but nothing about what such a fair deal would constitute. Can you please explain what is in your mind a fair deal and on what is that based? Can you also tell us how much it is costing our nation to keep this matter unresolved?
Andri
1 year ago
A fair deal is a deal that will not threaten to dismantle the social welfare system in Iceland. But thats only my opinion. Its been obvious that the british and the dutch tried to make some money of our misfortune with the high interest rates offered on the IceSave loans. That in it self is ridiculous. Again, thats only my opinion. Im a designer with a passion for justice.
Saying that you have heard nothing about what a fair deal would constitute tells me you haven’t been listening very hard.
“Can you also tell us how much it is costing our nation to keep this matter unresolved?”
I feel like you are turning the issue on its head, how is that relevant? It does serve the governments agenda because its implies that we have lost out in some way for not reaching agreement when the opposite seems to be true, that we have actually made progress forwards getting a better deal.
Why don’t you ask the question of how much a fair deal would save us?
Dadi
1 year ago
Andri, again… what is a fair deal? You didn’t explain.
What payment terms at what interest? That is all I need to hear from people who say that they want a “fairer deal”. Is it 4% interest? 3%? 0%? Two years without payment? Three? Eight? Twenty?
I obviously haven’t been listening as hard as you for what constitutes a fair deal so please tell me and the rest of us what exactly it is.
Dadi
1 year ago
Not to become overtly arrogant but… a few days later we are still waiting on Andri to tell us what constitutes a fair deal…
remember, we need interest rates, payment terms and consequences…
First Iceland, then the World « The Money Party
1 year ago
[...] “Yes, a farce.’Isn‘t that what this whole thing really is’, asked a Dutch journalist yesterday after surveying the scene? It is a sad day.’ March 5 @ Dadi [...]
Mr King
1 year ago
Do we need a Referendum For A New Democracy?
Are you concerned about the future of democracy? Do you feel democracy is under attack by extreme greed in countries around the world? Are you sick and tired of: living in fear, corporate greed, growing police state, government for the rich, working more but having less?
Can we use both elections and random selection (in the way we select government officials) to rid democracy of undue influence by extreme wealth and wealth-dominated mass media campaigns?
The world’s first democracy (Athenian democracy, 600 B.C.) used both elections and random selection. Even Aristotle (the cofounder of Western thought) promoted the use random selection as the best way to protect democracy. The idea of randomly selecting (after screening) juries remains from Athenian democracy, but not randomly selecting (after screening) government officials. Why is it used only for individual justice and not also for social justice? Who wins from that? …the extremely wealthy?
What is the best way to combine elections and random selection to protect democracy in today’s world? Can we use elections as the way to screen candidates, and random selection as the way to do the final selection? Who wins from that? …the people?
InDefence Rewarded By Young Independence Party Members
1 year ago
[...] no hint of irony the lobbyist group InDefence which has fought vehemently against the payment of the IceSave debt to …, accepted an award this [...]