Formal notice by the EFTA surveillance authority
The EFTA surveillance authority (ESA) has released a formal notice which states the authority's opinion that under EU directive 94/19/EB the Icelandic government had an obligation to implement a system of deposit insurance in order to ensure that each bank depositor was guaranteed a minimum compensation of EUR 20.000.
The main arguments of ESA in favor of this opinion are that the EU directive implies an obligation by Icelandic authorities to ensure that implementation of the directive guarantees that each depositor is compensated in accordance with the directive.
In a press statement issued by ESA earlier today, Per Sanderud president of ESA notes that the authority will take into consideration any progress made in negotiations between the Icelandic government and its counterparties in the UK and the Netherlands. Should agreements be reached no further action may be necessary by ESA. The Icelandic government has from the beginning of this matter with backing by the Icelandic Parliament shown its readiness to resolve this issue through negotiated agreements with its counterparties. The government thus remains ready to conclude at the earliest convenience negotiations provided that comprehensive agreements are reached.
The government is now invited to submit an answer to the ESA letter of formal notice, within two months. Should ESA disagree with the government's point of view the authority can be expected to issue a further reasoned opinion, which can be the first stage of formal infringement proceedings.
A link to the ESA press release is found here:
http://www.eftasurv.int/press--publications/press-releases/internal-market/nr/1254