UK & Netherlands prepare to sue Iceland

[Zorak]

The UK and Dutch governments are preparing court action against Iceland to recover 4bn euros (£3.5bn) lost when the country's bank system collapsed.
It follows a referendum in Iceland which rejected a repayment plan.
The UK said it was "disappointed" by the "no" vote, while the Dutch finance minister said the time for negotiations was "over".

http://www.bbc.co.uk/news/business-13029210

This to me is an example of "over-democracy". A referendum was held on a matter that should have been dealt with purely by the appointed heads and under advice from experts. Now, Iceland can pretty much count on a steeper repayment plan, a longer period of financial insecurity, rejection from entering the EU community, and yet further downgrades in the countries economic rating by credit agencies; something which in turns makes borrowing far more expensive for the average Icelander, which pushes inflation up.