Financial Times FT.com

Icelandic economy

Iceland debates EU membership

By Andrew Ward in Stockholm

Published: July 16 2009 02:33 | Last updated: July 16 2009 02:33

Iceland’s parliament was poised to vote on Thursday on whether to start talks to join the European Union as the country’s central bank said it would honour a deal to reimburse Dutch and British savers who lost money in Icelandic accounts.

Debate over EU membership has become entangled in the fallout from the country’s financial crisis because the return of funds to European savers is considered crucial to its hopes of joining the bloc.

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