Icelandic members of parliament linked with the corporate world

All this discussion about financial support, corruption and so on it has now been shown that members of parliament have close connections with the corporate world. That should not be a problem per se, in an open and transparent society. That is not the case here in Iceland at the moment, and has in fact never been that way. The report from the company Creditinfo Iceland, made for Frettabladid newspaper, shows that half of the 63 members of parliament have ties to the corporate world.

30 members are linked to 55 companies. They are either, chairmen, financial directors, CEO´s, accountants, or board members or backup board members.  This is incredible. Members of parliament should not be any of this listed above when they are in public office. This breeds corruption. That is exactly the case here.

This has direct effects on public affairs, politics and the financial markets in Iceland. The best example is the most serious one. Iceland joining the EU. This has been haltered by most of the political parties and by the fishing industry. The question is how much did the fishing industry pay to the political parties. The common Icelander has always been ready to die for the fishing fleet owners, no matter how badly they treat the workers, the paying public or how much they have been allowed to ransack the fish, and then over mortgage their own fish so that they can never pay it back.

It is rather simple, the Independence party for example is in its essence a pro euro party, but it has fought against it with mighty force. That stance against the EU has always been in direct contradiction with the party philosophy. Market freedom and individual freedom. How can a market flourish when it is protected by toll fees, or by being isolated from the main market area that is is the EU?

The only sensible explanation is that their opinion was for sale. The fishing industry bought it. Then the banks came in and bought unlimited and unregulated freedom for the banks. It took only 8 years to destroy the financial system set up in 2000.  There must be a reason that the Central Bank of Iceland refused to use its own means to regulate the banks. That in itself was a contradiction with all major economic theories and practices. It is not just pure stupidity that makes things work the way they did and still do.  There is influence, money, agenda.

Iceland is almost unique in the sense that the nation is built up so that all the risk of loans goes to the ones that take the loan, the banks or funds that do loan, take no risk.

Here are two cool entry’s about the political corruption here in Iceland.

The Reykavik Grapewine article and the Smari McCarthy blog entry.


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