The volcano of Iceland has been reducing its activity slowly which has disturbed the whole Europe's air traffic for more than one month. The volcano named Eyjafjallajokull's temperature has fallen down to 100c and is now producing only steam and not the magma.

The experts and geologists have said it is not sure that the eruption has finished or not. But at any point of time it can get worse and hamper the air traffic. It can be dangerous any time as per the experts. So it is not completely finished yet.

Iceland's Eyjafjoell spewed the ash plume to decrease the volcanic activity. Unbelievably, the volcano has declined in recent days and the volcanic activity has also somewhat decreased.

As per the experts, adding the ash product could lead to drop further. The geophysicist Steinunn Jakobsdottir has said that the column of ash rising Eyjafjoell has hardly ever gone under five kilometers till yesterday.

The latest buzz catching these days is the about the Iceland's volcanic ash cloud, this is being mostly profited by the spammers.

Spammers are cashing on this misery by sending out numerous mails that appears to come straight from Civil Aviation Authority and offers the sufferers a considerable amount of compensation due to the losses caused by the ash.

The dismay of cancelling the European trip wasn't over and this new misery came up.

Iceland's meteorology office has said that Iceland's volcano roared back to life Thursday, shooting a plume of ash 4 1/2 miles high and appearing ready to blow again.

The Icelandic Meteorological Office and the Institute of Earth Sciences at the University of Iceland said in a statement, "The eruption has changed back to an explosive eruption, lava has stopped flowing and most of the magma gets scattered due to explosions in the crater."

The eruption of a volcano in Iceland does not pose a health threat to Europeans from gases and ash released into the air, a Russian expert has said.

RIA Novosti reported on Friday that Arkady Tishkov, deputy research chief at the Institute of Geography of the Russian Academy of Sciences, said the ash and gases from the volcano eruption on the Eyjafjallajokull Glacier will not adversely affect the health of the European populace.

The gases would also likely have only a minimal impact on weather, he said.

The U.K. government has pledged to be committed on the debt deal and is looking forward to finalize the agreement in due course of time, with Iceland after the mutilation of Icesave bank. The people of Iceland have rejected the deal between them.

The latest results depicts that the Icelanders are against the deal, which was agreed a year back, in which it was decided that Iceland shall repay Dutch and U.K. governments, EUR3.9 billion till they reach 2024 along with interest rates of 5.5% on the debt.

This was the money which was pooled in by the U.K. and Dutch governments to save the money invested by the U.K. and Dutch depositors in Icesave bank, which ruined due to the economic crisis.

Iceland is facing a tough economic stipulation. Now there is a huge concern over its repayment of a $5 billion bailout loan. The talks between Iceland and the Treasury over the issue ended without any result as the Government in Reykjavik also insisted that the proposed interest bill was too tedious.

But the Icelandic Prime Minister Johanna Sigurdardottir is hoping to reach a solution to the ongoing talk. She believes that the deal is still open for a short term.

Reykjavik  - Iceland has picked its chief negotiator to begin talks on joining the 27-member European Union, the foreign ministry said Tuesday.

Iceland reversed its a decades-long policy of independence from the EU in July, when it handed in its application to the EU in the wake of the global financial crisis that a year ago saw its three main banks collapse. The application is being assessed by the executive European Commission.

New Delhi  - India's central bank announced Tuesday that it would keep key short-term interest rates at their current record lows to support the economic recovery process while trying to ensure price stability.

The Reserve Bank of India also retained its growth projection for the 2009-10 fiscal year at 6 per cent while raising the inflation forecast to 6.5 per cent from 5 per cent in its mid-yearly review of monetary policy.

Reykjavik - Financially battered Iceland could benefit from introducing the European currency, the euro, the Organization for Economic Cooperation and Development (OECD) said Wednesday.

The Paris-based OECD said in a new economic survey of Iceland that there was a need for tax hikes but also "substantial scope to reduce health and education expenditure" to tackle budget deficits.

Reykjavik - Iceland's government survived aother key vote when parliament Friday approved a plan to compensate mainly British and Dutch savers in a failed Icelandic bank.

Parliament, the Althing, has for 10 weeks debated the plan to give an Icelandic state guarantee for the Icesave savings accounts of Landsbanki totalling some 5.5 billion dollars.

"This is one of the largest financial and economic issues ever faced by Iceland," Prime Minister Johanna Sigurdardottir said Friday.

Reykjavik - Iceland's President Olafur Ragnar Grimsson has broken his left shoulder in a horse-riding accident, news reports said Thursday.

Grimsson was riding Wednesday with a group of people including his wife at Hunavellir in the north-west part of Iceland when his horse tripped and he fell off, the reports said.

The president was taken to a hospital in Reykjavik where X-rays indicated that he had sustained a broken shoulder. Some 10 years ago the president sustained a similar injury.

Reykjavik - Iceland's central bank Thursday kept its key interest rate at 12 per cent.

The Monetary Policy Committee said the Icelandic krona has remained stable but further rate cuts hinge on a stronger krona.

The central bank Sedlabanki's most recent cut was in June.

The North Atlantic country has been hit by the global credit crunch that saw its three major banks taken over by the state. Unemployment has also increased as a result of the crisis.

Reykjavik  - Iceland's government Monday presented a plan to issue bonds worth 2.1 billion dollars (1.5 billion euros) to capitalize three major banks and "re-establish" its banking system.

Islandsbanki, New Kaupthing and New Landsbanki were launched after the main Icelandic commercial banks in October 2008 collapsed over the global finacial crisis.

The plan was to be concluded by August 14 and hinges on approval

from among others the Icelandic Financial Supervisory Authority.

Reykjavik - Iceland's government formally filed its request for European Union membership on Friday, reported the nation's Foreign Ministry.

Iceland's parliament only agreed to seek membership on Thursday after more than a week of debate.

The application was filed both with the EU Commission in Brussels and the offices of the rotating EU presidency in Stockholm. Leaders of both have welcomed Iceland's application.

Reykjavik  - The parliament of Iceland Thursday assembled to vote on the government's planned bid to join the European Union, ending a marathon debate that began last week.

Prime Minister Johannna Sigurdardottir's government had argued that seeking membership of the 27-nation bloc is the best way to stabilize the North Atlantic nation's economy.(dpa)

Reykjavik  - A marathon debate on the Icelandic government's planned bid for European Union membership resumed Wednesday, with issues including the size of Iceland's debt and government obligations to foreign nationals with deposits in the main banks that collapsed in the autumn.

Prime Minister Johanna Sigurdardottir's government has decided that membership is the best way to stabilize the North Atlantic nation's economy.

Parliament officials said a vote could possibly take place late Wednesday.

Reykjavik  - Legislators in Iceland's parliament Tuesday resumed their lengthy debate on the government's plans to bid for European Union membership.

The debate that began last week has also reflected divides within the coalition headed by Prime Minister Johanna Sigurdardottir.

Issues debated include the size of Iceland's debt and obligations the government has concerning payments to foreign nationals with deposits in the main banks that collapsed in the autumn.

Reykjavik - Iceland should turn in its application for European Union membership by the end of July, Prime Minister Johanna Sigurdardottir told the nation's legislature Saturday.

Speaking before the parliament, or Althing, Sigurdardottir said she plans to make the application during a July 27 meeting of EU foreign ministers. She urged members of the 63-seat legislature to move quickly so that the application could be filed as planned.

Reykjavik  - Iceland's government was preparing to ask parliament to vote on applying for membership in the European Union at the end of the week, reports said Wednesday.

Prime Minister Johanna Sigurdardottir was hoping the foreign affairs committee would hand over the proposal to parliament for a debate and vote, perhaps on Friday, according to sources close to the government.