MAIL ONLINE: David Miliband has assured Iceland that its president's decision to veto the repayment of billions of pounds owed to Britain will not affect its bid to join the EU.
The comments by the Foreign Secretary directly contradict those of Gordon Brown who has threatened serious consequences if the money does not enter Treasury coffers.
On Tuesday, Iceland's president Olafur Ragnar Grimsson called a referendum on a law to return £2.3billion owed to Britain to cover the bail-out of more than 200,000 savers in the collapsed online bank Icesave.
Icelandic voters are expected to reject the scheme.
Today Iceland's foreign minister said he had been assured by Mr Miliband that a presidential rejection of the so-called Icesave bill would not torpedo Iceland's EU bid. >>> Daniel Martin | Friday, Januar 08, 2010
