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ICELANDIC president Olafur Ragnar Grimsson made a rare choice for a political figure in the thick of one of the most severe financial crises to hit a developed nation – he decided to put to a public vote a government payout that has the potential to damage the country’s economy for decades.

While most governments have ploughed ahead with costly bank bailouts in the face of deafening public outrage, Mr Grimsson has unexpectedly given the Icelandic people a say, as the country grapples with its economic collapse following the meltdown of its banking system and currency.