Iceland, a Nordic island country with a population of only 300,000, once represented the full meaning of a happy life: the per capita GDP ranked fourth in the world, the high welfare policy of free medical care, free education and high unemployment relief, brand-name cars everywhere on the streets, and the astounding expensive luxury goods in the shop windows. Now, everything is gone. As the first country in Europe that was completely hit by the Wall Street financial turmoil, Iceland's three major commercial banks, Landsbanki, Glitnir and Kaupthing, faced bankruptcy and were taken over by the government. Hald, the prime minister of Iceland, issued a warning of "national bankruptcy" to the people all over the country. The financial industry, which has led Iceland's "extraordinary development" 10 years, has become the chief culprit of the economic crisis. Since the early 1990s, Iceland has followed the financial system of Britain and the United States, formulated an open financial policy with high interest rate and low regulation, attracted a large number of overseas funds, borrowed a large number of short-term debts with low interest rate from the international capital market, and invested in high-profit and high-risk assets, thus obtaining huge spreads, which enabled Iceland to quickly accumulate wealth. Icelanders live a rich and luxurious life with high debts. However, the global credit crisis triggered by the financial turmoil on Wall Street left them hundreds of thousands of dollars in debt on average. 10 10 17, Iceland * * and China's ambassador to China, gunnar Snorri Gunnarsson, accepted an exclusive interview with Outlook Oriental Weekly on how the Icelandic government responded to this unprecedented financial disaster. He said: We can't take Premier Hald's words out of context. The Icelandic government is far from bankrupt. It is necessary to strictly distinguish between government finance and banking departments. Iceland is still operating normally. The only problem is that two Icelandic banks have opened deposit accounts in some European countries. At present, the Icelandic government has taken some special measures to ensure that both British citizens and Dutch citizens can get their deposits back according to the deposit safety plan stipulated by the European Economic Area (EEA). Of course, this requires a huge amount of cash and a lot of time, and the Icelandic government is involved in this matter. What we are most concerned about at present is whether individual depositors can get their money back. Commercial banks in Iceland have many assets, but they need time to sell them at reasonable prices. After the Icelandic government took over the three major commercial banks, it did not intend to shirk its responsibilities. We are stepping up consultations with other countries to solve related problems. 10 10/month 1 1 day, the Icelandic government reached an agreement with the British and Dutch governments, agreeing to protect the personal deposits of British and Dutch citizens in the three major commercial banks in Iceland according to the relevant obligations stipulated in the European Economic Area. The Icelandic government has made it clear that it will bear legal responsibility; We are seeking cooperation with our close partner countries. As a part of the modern global economic system and an active participant in the European Economic Area, Iceland suffered more serious damage than most other countries in this financial crisis. Many Icelandic families have lost a considerable part of their life savings. Inflation in Iceland is quite serious, public debt is increasing and unemployment rate is rising at the same time. But in the long run, Iceland's economy will perform well. Despite the heavy debt, we still have huge quality assets around the world. The Icelandic government's own financial situation is still good. At the same time, the basis of our well-managed fishery and clean and sustainable energy resources has not changed, and the price of international aquatic products is rising. In addition, Iceland's developed service industry, high technology and tourism still have strong profitability. Most importantly, we have a strong and well-educated workforce. Although Icelandic financial institutions and banks are troubled by overseas debts, they have also acquired many high-quality assets. The Icelandic government will not take over all the contractual obligations of commercial banks, but will respect the legal obligations under the framework of the European Economic Area Agreement. In a word, Iceland is a modern European economy and a member of the European Economic Area. Our economic foundation is still strong, and we will overcome the current difficulties. The financial crisis has affected the consumption habits of Icelanders. In the past, they spent a lot of money, and Iceland relied heavily on imported goods. But now, with the devaluation of the Icelandic krona, imported goods have become very expensive. Many people who have foreign loans find that their debts have increased, but their income has decreased relatively. This makes them have to reflect on their previous consumption patterns. Now people can only cancel their plans to travel or get a new car to prepare for the severe winter. In the past ten years, with the great development of the global economy, especially the prosperity of the financial industry, some people have made a lot of money. Some people begin to get lost and forget that they are a part of real life. People should become more realistic from now on. For ordinary Icelanders, they will return to the traditional simple values. We Icelanders used to hold the idea that although money is important, it is not the most important, but the relationship between people is the most important. Icelanders will change their consumption concept, and their greatest concern will become how to keep their jobs; Live not for the present, but for the future. The reality in Iceland tells us that we need the vitality and energy of the private sector, but we also need effective control and supervision of the private sector. As for the government, we need to cooperate with other countries to find a new balance between laissez-faire and authoritative supervision of the private sector. The Icelandic government recognizes that the service industry and the financial industry are indeed very important, but the real economy such as manufacturing and retail is more important. We will focus on the real economy.