Iceland is at once apples and oranges with Estonia -- an island largely dependent on fishing and not a member of the EU -- and something very similar -- with a small population, a big bank and services sector that sometimes seems to be propped up largely on air, and a current account deficit of over 10% of output.
Iceland, which is incidentally probably the next great place we plan to visit when the kids are at the right stage, has had an economic downturn. According to a NYT article , people aren't buying cars anymore, the horror, and a carton (a pint?) of Ben and Jerry's is up to $10, even with the dollar also weak.
Life outside of the EU sure is a lot more volatile. I don't think Estonians, who panic whenever the rate of growth of the rate of growth tapers off, would be able to cut it if they were cut adrift in the North Atlantic without any trees.
As such, Iceland could be seen as a cautionary tale of what could have happened if we had voted against the EU. Instead of being in the cozy safety of the bureaucratic limited liability company that is the EU... Iceland goes it alone, and despite nationalist gumption and smart financial decisions, still gets burned. Instead of having the Estonian kroon, which does absolutely nothing to deserve its currency-board backed stability, Iceland has the krona, its pride and joy as well as the world's "worst-performing major currency".
Or, given how similar the symptoms are -- inflation, and higher cost of living on what some have termed a northern Hawaii -- are we that different? Maybe Iceland will be the first domino in a mainland crisis.
On a more cheery note, Sigur Ros is expected to release their new album by summer after all. And less driving of motor vehicles would only be a good thing in Iceland, which is as addicted to it as are we Estonians.