Iceland to Appoint First Openly Gay Woman as PM

(NEWSER) - Iceland held fast to its independence as it rocketed to become one of the world's richest nations. But after a spectacular bust that decimated its currency and felled its government, the island nation has voted to join the EU. The accession plans are a victory for the country's new PM, Jóhanna Sigurdardóttir, who is trying to stabilize the country after its entire banking system collapsed. While the EU is nearly certain to accept Iceland's membership, meeting the bloc's economic requirements will take at least 18 months. More»

Country's troubles likened to Greek crisis

(NEWSER) - In order to pay back $11.6 billion in debt, Portugal needs to re-enter capital markets next year—and as it stands, that's looking like a tall order. The deadline isn't until September 2013, but the International Monetary Fund could call on the country to release a financial plan a year in advance. And if it looks like Portugal will be incapable of accessing markets, the IMF could overhaul its bailout, the Wall Street Journal reports. More»

May also freeze central bank's assets

(NEWSER) - The European Union today rolled out its embargo of Iranian oil, adopting the measure as what Britain's foreign secretary called "an unprecedented set of sanctions" designed to crack down on the country's nascent nuclear program. Existing contracts for crude oil and petroleum will be honored until July, but all new contracts are embargoed effective immediately, the AP reports. The EU is also poised to freeze Iran's central bank's assets. The sanctions should cut deep, notes Reuters : The EU is Iran's biggest oil customer after China. More»

Letting its banks perish worked out for island nation

(NEWSER) - Don't look now, but Iceland's economy is growing. Tourism is up, the standard of living remains high, and unemployment is down to 7%. "For a country whose entire financial system collapsed, Iceland is doing remarkably well," the IMF's mission chief there tells the Washington Post . Why? In part because Iceland charted a unique course through the financial crisis: It let its big banks default and its currency collapse, and poured money into its economy and social safety net, raising taxes on the wealthy to do so. More»

His EU veto could have major ramifications

(NEWSER) - David Cameron's decision to exercise Britain's veto and sit out negotiations on a new EU treaty is being seen as a momentous move, even if the ramifications aren't quite clear yet:

• New York Times : The decision "has left Britain as isolated as it has ever been in postwar Europe and effectively left out of future European decisions," write Sarah Lyall and Julia Werdigier. They add, however, that "there was widespread confusion over what this all actually means."
• Guardian : "I do not hear the sound of champagne corks or celebration among British Eurosceptics," writes Michael White. "Beware of what you wish for, is a wise saying. Who knows what happens now? But Europe, for all its follies and failings, has become a scapegoat for weaknesses that are really our own. We may be about to rediscover that awkward truth. It was why we joined in the first place."