Responding to the resounding 'No' vote Icelanders delivered in the referendum on the proposed deal to repay Britain and the Netherlands outstanding debts from the failed Icelandic bank Icesave, European Parliament Vice President Diana Wallis MEP said:

'The Icelandic people needed an opportunity to have their say.

"The result is no surprise. But what really matters is that the Icelanders, the Dutch and the British have kept negotiating in search of a lasting solution. Although there is no new agreement yet, they have moved on from the untenable package rejected by the Icelandic people.

"The referendum result should be respected, but we are not a million miles from reaching a different and acceptable settlement. That would be the best answer to the referendum outcome.'

NOTE TO EDITORS:

Diana Wallis MEP is the European Parliament Vice President responsible for the Arctic and Nordic matters. She was recently in Iceland to deliver a key note lecture at the University of Iceland and to meet the Icelandic Prime Minister.