| EEA contract might be upset because of the emergency legislation |
| Wednesday, 19 August 2009 18:33 |
 The EEA contract could be upset if it will come out that the emergency legislation is against a clause of the contract, says a former lawyer of the EFTA. Thirty nine European banks and financial institutions have sent in a formal complaint to the supervisory institution of EFTA because of the emergency legislation. By setting the emergency legislation last fall were the domestic balances insured in full. The balances in foreign branches of the Icelandic banks were not insured by the same means. There have been disputes about if this is a violation of the equality rule of the EEA contract. In inquiries at the parliament on June 8th asked Gudlaugur Thor Thordarsson, parliamentarian of the independence party, Gylfi Magnusson minister of trades if the formal errands had arrived to ESA because of the legislation. Gylfi did not know about that. Following that sent Gudlaugur an inquiry to the ESA (EFTA Surveillance Authority) and in an answer from the ESA says that 39 European financial institutions have sent a formal complaing because of the legislation, seven of which have requested anonymousity. The letter which is dated May 29th is sent in by the English legal firm Norton Rose and Josep Tirado signs for it. He said in the news yesterday that there have already started law suits on the Icelandic government but did not want to inform any further. In the complaint are five reasons, violation of the equality rule, violation of the government subsidy, violation of clauses about financial reorganizing of financial companies, human rights pact of Europe and that legal expectations were broken. Einar Pall Tamimi former main lawyer of the EFTA says that the next steps are that ESA will look for an estimation of Iceland on the case where they will be given the chance to answer. If the Icelandic government does not obey the ruling of the ESA will the Icelandic government be sued for the EFTA courts. If the EFTA courts come to the conclusion that Iceland had violated the EEA contract will the EU nations take political actions where no court can rule about opinionative cases between the EFTA and EU. The EU nations could stop practicing the EEA contract, partially or completely for instance by shutting down all free trades and financial transfers. There have been words about the possible defense of Iceland is the emergency right of a nation where many things point to that the economic problems that were facing the country would have been much more serious if the emergency legislation had not been set. Einar Pall says the process is long but the case is in a legal process which will have its coarse.
News Article by Gudny Helga Herbertsdottir Translated by Anya Original Article in Icelandic
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