Iceland: 5 years on, nationalism is growing inside capital controls

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2013-10-07 23

Thinking back to five years ago, Iceland was forced to take the right decisions, not saving the big banks. But that was perhaps the easy decision: after all, the major part of creditors in these banks were foreigners. Later on, frantic attempts were made to save the very Icelandic banks, i.e. Saga Capital, VBS and some saving societies. Now, the idea is to tax estates where foreigners are ca. 90% of creditors whereas other failed financial companies are not taxed. “Fuck the foreigners” was a policy after the collapse – and it still seems to be the only policy five years after the collapse. .....

Part of the budget proposals, put forth last week, is that estates of the failed banks should be taxed. .....

The intention seems clear enough. It would indeed be much more clear-cut if the definition was plainly to tax “estates where major part of creditors are foreign.” ....

Update 9 Oct: Comment just added to Sigrun's blog by anrigaut