Page last updated at 18:40 GMT, Sunday, 5 October 2008 19:40 UK

Iceland moves to shore up economy

By Ray Furlong
BBC News, Reykjavik

Fish in a boat
Iceland's fishing industry has strongly opposed EU membership

Talks are being held in Iceland to persuade the country's trade unions to repatriate a sizeable portion of their foreign-invested pension funds.

To help stabilise Iceland's troubled economy, they are also being urged to agree wage restraint, despite the country's inflation rate of 14%.

But in return, the unions want Iceland to apply for EU membership - a move it has resisted for decades.

The government nationalised Iceland's third largest bank, Glitnir, last week.

This sent the national currency, the Krona, plummeting. It lost a fifth of its value against the dollar by Friday.

Also, the nationalisation led ratings agencies to downgrade Iceland's credit rating, and many analysts have said they doubt that Iceland can afford to bail out its other banks, which are also in trouble.

There's pressure for a deal before markets open, on Monday, to prevent further turmoil.


What is your reaction to the financial crisis? Send us your experiences using the form below:

In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below.

Name
Your E-mail address
Town & Country
Phone number (optional):
Comments

The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide.





SEE ALSO
Iceland nationalises Glitnir bank
29 Sep 08 |  Business

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites


FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

BBC navigation

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific