Iceland and Ireland had
some of the highest GDP rates in Europe over a 15 year boom: so-called “Nordic and
Celtic tigers.” Both diversified into software, biotechnology and financial
services, and a property boom, but Iceland built up a trade deficit of 16% of
GDP in 2007 (U.S was 5%, Spain 10%); all unsustainable. Now the boom`s over,
Iceland faces a currency collapse and attacks by speculators, as the Krona has
lost 36% against the Euro in 2008 alone (April), inflation is over 5%, housing`s
unsold, central bank interest rates are over 15%, and private debt is
astronomical. The problems were confounded because the big banks were privatised
in 2003. “No man is an island,” there`s no escape; we welcome the Icelandic
working class to the realities of the capitalist globalised economy!
Based on El Pais report,
27.4.08
