It has been reported (Icelandic) by Morgunblaðið (mbl.is) that Iceland new government is going to stop EU accession of Iceland right away. This is no surprise, since Iceland new government is made up of right wing extremist that are against EU and Iceland EU accession, due to there xenophobic views on Europe and other countries and cultures, in Europe and other parts of the world if it fits the agenda.
This is bad news for Icelandic people, as for the result of this they are going to see worse economic outcome in the next few years, how fast this is going to change depends on the market reactions to this news. It is clear regardless, the effects of this blocking of Iceland EU accession is going to be felt soon. It might be soon as matter of weeks, but no more then one to three months at most. It is clear that Icelandic people are going to pay greatly for this stupidly of voting this two parties (Independence Party and Progressive Party) to power again. It is going to be costly and messy affair that is going to make the current recession in Iceland last for more then 20 years, with capital limits and even import limits in the long run when things start get real tough in Iceland (this is a common response in Iceland to a repression, it is not going to be compliant with EEA rules).