Iceland's president, Olafur Ragnar Grimsson, vetoed legislation today that would have compensated creditors in the United Kingdom and the Netherlands for $5.5 billion in losses after the collapse of Iceland-based bank Icesave. Grimsson's decision will have major effects on his country's financial stability and political future, as its bid to join the E.U. could be complicated and the IMF may not provide it with more financial assistance. Once vetoed, the referendum now goes to a popular vote, where it will face strong opposition from those who think the terms—a 5.5 percent interest rate—are too harsh. "Now the people have the power and the responsibility in their hands," said Grimsson.