Iceland's slow thaw

A year after Iceland was pushed to the brink of bankruptcy, the nation's fate remains finely balanced. While politicians see signs of recovery, there are concerns that new austerity measures set to start in 2010 could plunge the country into another crisis.

Business is booming at the Blue Lagoon. One evening last week at the hot springs on the lava fields above Grindavik, dozens of bathers were still enjoying the warm geothermal waters even as the last trace of daylight faded from a sleet-filled Icelandic sky.

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