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...still smarting from Britain's decision to use antiterrorism laws in 2008 to freeze Iceland's assets and force the country to agree to reimburse the British savers. "The British government used gunboat diplomacy, putting us in the same category as al-Qaeda and the Taliban," says Magnus Arni Skulason, a founding member of InDefence, a grass-roots campaign that helped secure 62,000 names - over a quarter of Iceland's 320,000 people - on a petition calling for the referendum. Skulason says Iceland has become the whipping boy in the financial meltdown. "Yes, there was a regulatory problem...

Author: /time Magazine | Title: Isolated Iceland: Why Reykjavik Is Defying Europe | 1/11/2010 | See Source »

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