Icelanders reject plan to repay £3.5bn to Britain and Netherlands

By Richard Tyler and David Harrison


Published: 11:51PM GMT 06 Mar 2010

The government of Prime Minister Johanna Sigurdardottir government admitted
defeat after it became clear last night that more than 90 per cent of the
volcanic island’s voters had supported calls by their president for a “fair
deal” in a national referendum on the issue.

Iceland’s parliament had originally agreed to pay back Britain over 14 years
but the island’s president Olafur Grimsson refused to approve it and called
the referendum.

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Icelanders reject plan to repay £3.5bn to Britain and Netherlands

By Richard Tyler and David Harrison

Published: 11:17PM GMT 06 Mar 2010

The government of Prime Minister Johanna Sigurdardottir government admitted
defeat after it became clear last night that more than 90 per cent of the
volcanic island’s voters had supported calls by their president for a “fair
deal” in a national referendum on the issue.

Iceland’s parliament had originally agreed to pay back Britain over 14 years
but President Olafur Grimsson refused to approve it and called the
referendum.

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Greece set to announce more austerity measures

Greece is set to announce additional austerity measures in order to get its
battered economy back on track and to reassure international markets that
the country will not default on its debt.

Olli Rehn, the European Economic and Monetary Affairs Commissioner, who was in
Athens today for high-level meetings, called for additional measures to
ensure that Greece meets its fiscal targets.

Mr Rehn said after meeting George Papaconstantinou, the Greek Finance
Minister, that the fiscal and structural measures in the Greek Stability
Programme were being implemented but that additional measures were needed. “I
want to encourage the Greek authorities to consider and announce additional
measures in the coming days,” he said. “I’m sure that together we
shall overcome these formidable economic and fiscal challenges.”

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Iceland repayment talks collapse

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Talks to agree how Iceland will repay more than $5bn of debt it owes to the UK and the Netherlands have broken down without agreement.The collapse of the Iceland-based Icesave online bank in October 2008 hit savers in both countries. The UK and Dutch governments, which compensated savers, want Iceland to repay 3.8bn euros (£3.3bn; $5.4bn). However, the three governments have been unable to agree on revised payment terms after a week of negotiations. “We had hoped to be able to reach a consensual resolution of this issue on improved terms, but this has not yet been possible,” said Iceland’s finance minister Steingrimur Sigfusson. In a statement, the UK and Dutch governments said they were “very disappointed that despite all the efforts over the past year and a half, Iceland is still unable to accept our best offer on the Icesave loan“. Stricken economyIceland plans to hold a referendum on the Icesave repayment on 6 March, but the government was hopeful it could reach a different deal ahead of that. Opinion polls suggest that a majority of Icelandic voters would reject the repayment plan. The dispute has delayed International Monetary Fund help for Iceland, which Reykjavik needs to shore up its stricken economy. The country’s parliament voted for a referendum on the Icesave bill after President Olaf Ragnar Grimsson vetoed the repayment to the UK and the Netherlands. Opponents say the repayment plan forces Icelandic taxpayers to pay for bankers’ mistakes. The dispute has also overshadowed Iceland’s application to join the EU, which was submitted in July. Iceland’s economic crisis persuaded many of its politicians that it would be better off inside the 27-nation bloc.

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Japan quashes optimism despite GDP rise

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Japan’s economy grew faster-than-expected in the fourth quarter with a
stimulus-fuelled rebound in domestic demand and corporate investment.

Growth of 1.1 per cent between October and December, compared to the third
quarter of 2009, was the fastest since a 1.3 per cent expansion between
April and June 2009 and translated into an annualised rise of 4.6 per cent,
beating a 3.7 per cent forecast.

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Weekend Checklist: December 27, 2009

Published: 6:39PM GMT 27 Dec 2009

The Sunday Telegraph

• Abu Dhabi has teamed up with one of Canada’s largest pension funds to
mount a £5bn bid for EDF’s electricity distribution network.

• House price affordability has started falling for the first time since
the slump in property values.

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Irish civil servants bear the brunt as public sector pay is slashed in £3.6bn cost-cutting Budget

By
Daily Mail Reporter
Last updated at 6:18 PM on 09th December 2009

Irish Finance minister Brian Lenihan delivers his budget at Government Buildings in Dublin today
Irish civil servants are to face massive pay cuts in one of the toughest Budgets in the nation’s history.Revealing an unprecedented 4 billion euro (£3.6bn) cost-cutting package,Irish Finance Minister Brian Lenihan  admitted Ireland had been shaken by the dramatic collapse of its economy.But he insisted the country was now turning a corner and Irish people would not have to suffer such a punishing Budget again.’The effort demanded of every citizen in this Budget is substantial, but it is the last big push of this crisis,’ he said.’Further corrections will be needed in the coming years, but none as big as today’s.’Among the most contentious of the hard-hitting measures is a drop in the pay of public sector workers, with salaries cut from 5 per cent for those on 30,000 euro (£27,000) or less up to 8 per cent for those earning up to 125,000 euro (£114,000).Top-earning public and civil servants will take a salary cut between 8 per cent and up to 15 per cent for those on more the 200,000 euro (£182,00), with the Taoiseach taking a 20 per cent cut.Social welfare payments affected include child benefit payments, down 16 euro (£15) a month, with changes to jobseekers allowance meaning younger recipients will get around half the standard rate.

In a move to stem the flow of shoppers from the Republic into Northern Ireland, excise duty on a pint of beer and cider will come down 12 cent, with 14 cent shaved off the price of spirits and 60 cent off a bottle of wine.Where the Irish savings will come from1bn euros on the public sector pay bill760m euros on social welfare980m euros on day-to-day spending960m euros on investment projects
A reduction in VAT from 21.5 per cent to 21 per cent is also
expected to hit cross-border trade, on the day the British government
raised its VAT rate.A much-touted new carbon tax of 15 euro
(£14) per tonne on fossil fuels will see the price of petrol, coal and
peat briquettes rise.In a sop to the car industry, which
collapsed along with the economy, a one-year car scrappage scheme
allows for a 1,500 euro (£1,360) tax break for buyers swapping an old
car for a new, lower emissions motor.In a surprise move, Mr
Lenihan said Ireland’s super-rich elite, who are tax-resident offshore,
will now have to pay a 200,000 euro (£182,000) levy every year.The Irish deficit currently stands at 12 per cent of GDP. EU rules state that countries are expected to keep their budget shortfalls below 3 per cent of GDP.

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Mitchells & Butlers at war over sacking of directors

By Lawrie Holmes and Kamal Ahmed

Published: 9:33PM GMT 05 Dec 2009

Piedmont, which is headed by billionaire Joe Lewis, will meet the Takeover
Panel tomorrow to express its view there were no grounds for the removal of
Mr McGuire and Mr McMahon. The concerns have already been raised in a letter
sent to M&B on Thursday from Piedmont’s lawyers, Dickson Minto.

As the battle for control of the pub company that owns All Bar One and
Harvester deepened this weekend, The Sunday Telegraph can also reveal that a
third candidate for chairman was rejected by the board which has suffered a
very public split. Simon Burke, chairman of Majestic Wines, was originally
shortlisted.

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India’s economy beats growth forecasts

India’s economy grew at a far stronger rate than predicted in the second
quarter of the fiscal year as poor farmers weathered a late monsoon, civil
servants enjoyed a pay hike and the service sector boomed.

Policy makers had argued that strong domestic demand and conservative banking
practices would insulate India from an ailing Western economy.

In the three months from July to September those hopes appeared to be
vindicated as figures showed output grew by 7.9 per cent, compared with the
same period a year earlier – much greater than the 6.3 per cent forecast by
analysts.

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Brown risks US wrath by pushing global financial tax

By Andrew Porter, Political Editor

Published: 10:22PM GMT 26 Nov 2009

The Prime Minister will tell Commonwealth leaders in Trinidad that “a
global levy” is needed to protect the world economy from the havoc of
recent years.

Earlier this month, at a meeting of G20 finance ministers at St Andrews,
Scotland, Tim Geithner, the US Treasury Secretary, gave short shrift to Mr
Brown’s plans for what some call a Tobin Tax.

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