Sure, I do agree that nothing is safe. But an EU law protecting savings up to 100k eur is an order of magnitude safer than a very small (though beautiful) country, completely isolated in the middle of nowhere with it's own currency were banks where marketing saving accounts much much higher than the inflation rates, right? It's not even comparable.

I'm visiting Iceland in March, I'm affraid I might enjoy it a bit too much, enough to make me want to live there. :)