The Financial Times has declared the end of a saga with the headline ‘Saga ends with Icesave redemption’ in an editorial about Monday’s verdict yesterday.
“To take part in Europe’s single banking market, states must make the sector set up and run a deposit insurance scheme. Iceland’s case is that this obligation is not a duty for the state itself to bail out failed banks’ creditors, especially not when the failure is one of the entire system,” the piece reads.
The article goes on to say that the verdict was a “victory for law and economic sense.” “The ruling makes clear that EU law does not require taxpayers to bail out private banks, the mistake that proved so disastrous for Ireland yet still claims pride of place in European banking policy doctrine. ”
The international media has reported extensively on Monday’s verdict by the EFTA Court that Iceland had won both its cases in the Icesave trial.
While the news was widely celebrated in Iceland, reactions were somewhat different among publications abroad, with The Telegraph running the headline ‘Icesave Ruling Costs U.K. Taxpayers GBP 100 m.’