The fact is you cannot seriously recognize a country unless a country actually exists and there is no country in existence today called Palestine. Alot of people want to see it created but it does not yet exist and won't do until agreements have been worked out between Israel and the palestinians and it goes to not just the General Assembly but also the Security Council and gets formal UN recognition. They don't even achieve anything through this recognition, I doubt it will make Abbas anymore willing to talk than he has been for the past 3 years. Other than the fact that either side have any love of Israel right now the only other thing Iceland & the PA have in common is that they are both in debt.
Turkish warplanes hit Kurdish PKK militant targets in northern Iraq, CNN Turk reports (Reuters)
from the article: Iceland formally recognizes Palestinian state within 1967 lines