History

The island known to us as Iceland was settled by Norse seafarers, who established the world’s first known parliamentary republic in about AD 930. The original seat of this democratic system was Þingvellir, approximately one hour from the capital, Reykjavík, where the original Viking settlers used a natural amphitheatre, formed by a cliff wall, as their assembly. In the mid-13th century the islanders came under the sovereignty of the King of Norway. When Norway tiself came under the control of Denmark in 1380, Iceland did so too. In 1814, Norway became independent, but Iceland remained a Danish territory. In 1840 it was granted its own constitution, allowing for internal self-government.

Independence was granted at the end of the First World War, although it was not until 1944 that Iceland became a fully independent nation with its own head of state. Today, Iceland has a typically Western European spectrum of political parties, with a notable influence of female politicians within the main parties (Progressives, Independents, and Social Democrats). Iceland’s most famous modern political figure is also a woman, Vigdis Finnbogadottir, who served four consecutive terms as President between 1980 and her resignation in 1996. The Parliament, known as the Alþing, has largely been held by coalition governments. These were broadly centre-right until the mid-1970s, since when the left has dominated.

Iceland’s 2008 economic collapse caused citizens to protest strongly against what was considered a corrupt government. The then Prime Minister stepped down and the government collapsed. A new coalition government was created and the country’s economic and political situation has since become stable again.

Icelandic foreign policy is dominated by fishing and relations with other Atlantic powers. Iceland is a member of Nato, the Nordic Council and of the Council of Europe. Links to Nato have been loosening since the 1980s – in May 1985, the Alþing declared Iceland to be a ‘nuclear-free zone’ – a process which has accelerated since the downsizing of a large Nato base in the Icelandic capital.

Iceland has historically eschewed membership of the European Union largely due to issues about fishing quotas, but in July 2009, it applied for membership. There has been much contention about the move, and in 2013 Iceland’s right-wing coalition government announced they were to suspend their application for admission to the EU, abandoning negotiations. They have pledged to hold a referendum on continuing the talks.