Gallagher, MEP: Iceland referendum result does not jeopardise EU application

The referendum was called regarding a deal to compensate the British and Dutch governments over the collapse of internet bank Icesave in 2008. The Icelandic people voted today to reject this deal.

"This result in no way jeopardises Iceland's application to the EU and the two issues should be kept separate.

The stakes are high for Iceland: they need international loans to help rebuild their economy and today's vote could result in delays to these loans which will hit the economy hard. A longer term solution must and will still be reached.

The EU has signalled its will for Iceland to join. Both parties must now concentrate on achieving that goal. When reached it be of huge benefit to both Iceland and the EU. "

Pat the Cope Gallagher, MEP is the chair of the Iceland delegation in the European Parliament.