Iceland
Settled by Norwegians and Celtic immigrants during the late 9th and 10th centuries, Iceland boasts the world's oldest parliament, the Althing, established in 930. Independent for over 300 years, Iceland was subsequently ruled by Norway and Denmark. Limited home rule was granted in 1874 and complete independence attained in 1944. Literacy, longevity, income, and social cohesion are first-rate by world standards. The literacy rate is 100%.
Iceland has extended its territorial waters several times since the end of the 1950s to protect its fishermen and their main catch of Atlantic cod from foreign fleets. While fish still makes up a substantial proportion of exports, it now accounts for less than 10 per cent of gross domestic product. The country's economy is developing in new areas, not least tourism. Banking and finance reforms of recent years have helped to fuel a wave of economic growth. Icelandic business has made major investments abroad.
Iceland remains outside the EU but, although it has no armed forces, it is a member of Nato. Icelanders are divided over the presence of US troops which have been stationed in the country without a break since World War II. In 1985 Iceland declared itself a nuclear-free zone.
Progressive Party leader and former foreign minister Halldor Asgrimsson announced his resignation after his party's poor showing in local elections in late May 2006. He had come under pressure over economic worries, including inflation and rising interest rates. Foreign Minister Geir Haarde, from the conservative Independence Party, was slated to take over as premier.
There are no known threats to expatriate visitors or residents in Iceland.
In an incident out of character to Iceland’s usual calm, in April 2001 gasoline-filled projectiles were thrown at the wall of the US Embassy in Reykjavik. Fire engines were called but no damage or injuries were reported. Two men in their early 20s were arrested. Authorities would not give a motive for the attack, which coincided with violent demonstrations at the Summit of the Americas in Quebec City, Canada, against a proposed Americas-wide free trade pact.
