Today, Iceland’s Prime Minister announced that it has made “significant progress … towards solving the differences on the interpretation of legal obligations with respect to deposit guarantees in the European Economic Area.” According to the agreed guidelines, the government of Iceland will cover deposits of insured depositors in the Icesave accounts of the failed Landsbanki hf, particularly those in the U.K. and the Netherlands. The guidelines “also entail that the EU, under the French Presidency, will continue to participate in finding arrangements that will allow Iceland to restore its financial system and economy.” Further, the EU agreed to facilitate financial assistance to Iceland, including agreeing on a stabilization package from the IMF, which has yet to be finalized.