Iceland illustrates why political ‘hectoring’ from foreign countries is bound to fail in Greece

Iceland entered a period of financial crisis in 2008, with the country subsequently involved in a prolonged dispute over losses generated in the Netherlands and the UK by an Icelandic bank. Jon Danielsson writes that the crisis in Iceland has much in common with the ongoing crisis in Greece, not least the heavy pressure exerted on both countries by foreign governments. He argues that just as in Iceland, this pressure has been counterproductive in Greece, hardening opposition to any potential settlement.