Iceland’s president rejected a bill to repay Britain and the Netherlands more than $5 billion their savers lost when Icelandic banks collapsed, forcing a referendum on the issue. The move threatens vital economic aid and the country’s EU accession bid.

President Olafur Grimsson’s refusal to sign the unpopular Icesave bill into law on 5 January threw the country into a political crisis and put its hopes of joining the European Union in jeopardy.

The government said a referendum would be held as soon as possible. The outcome is highly uncertain with opinion polls showing almost 70% of voters oppose the bill.

more in the EurActiv article

And not to forget - People of Iceland don’t want Iceland to become another member of EU.