Iceland: A European Exception

The Icelandic prime minister said Monday night that there was a possibility of "national bankruptcy." Do you agree?

That would only be a possibility if the government was to assume all the debt of its banks. No government is going to bankrupt itself to save the creditors of banks .

So do you think Iceland will face pressure to join the E.U and then the euro zone?

Well this is certainly an issue in Iceland. But personally, I think it is too late, because this is a political process. There is no quick fix in joining either the E.U. or the euro zone.

http://www.forbes.com/facesinthenews/2008/10/07/cailleteau-iceland-landsbanki-markets-face-cx_ll_1007autofacescan01.html