President of Iceland Vetoes Icesave Legislation

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President of Iceland Vetoes Icesave Legislation

President of Iceland Ólafur Ragnar Grímsson announced at a press conference which began at his residence, Bessastadir, today at 11 am that he has decided to veto the Icesave legislation passed by the Icelandic parliament on December 30 and send it to a national referendum.

President of Iceland Ólafur Ragnar Grímsson announces his decision. Photo by Páll Stefánsson.

Fréttabladid reports that the president met with four ministers in private meetings on Sunday: Prime Minister Jóhanna Sigurdardóttir, Minister of Finance Steingrímur J. Sigfússon, Minister for Foreign Affairs Össur Skarphédinsson and Minister of Economic Affairs Gylfi Magnússon.

According to the newspaper’s sources, Grímsson spoke with Central Bank governor Már Gudmundsson and other experts yesterday on the economic consequences of vetoing the Icesave legislation.

The president neither spoke with the leaders of the opposition nor the representative of the International Monetary Fund in Iceland, Franek Roswadowski before making his decision, Fréttabladid states.

Leaders of the Confederation of Labor (ASÍ), the Federation of State and Municipal Employees (BSRB), the Confederation of Employees (SA) and the Federation of Icelandic Industries (SI) all urged the president to pass the legislation.

Click here to read more about this story and here to read the official translation of the president's statement.