That a portion of their debt was paid by other states is the key. Ireland swallowed all of the bank debt, and Iceland did not. There is not a day that goes by in which that is not considered in Ireland.
No, it's not Icelands debt paid by other states, it is a debt of Icelandic private bank that is paid out by other states. Why do you think that Iceland has more obligation to pay up a debt of icelandic _private_ bank than, say, Romania or Zimbabwe?
Iceland never claimed any kind of insurance of foreign deposits, so was not in any way obliged to pay them up.
The UK's position (AIUI) was that membership of the European Economic Area means that Iceland can not treat its own citizens' savings differently than those of other EEA member states' citizens. Hence the whole squabbling about repayment and such, which is still ongoing.
Yes, UK's position ;) But I guess UK's position is based on interests of affected UK citizens, and doesn't have to be valid. I guess there are different ways to read these EEA treaties and regulations than what UK and Netherlands says, otherwise Iceland would be kicked out long ago for non-compliance.
