According to the 1944 Constitution (amended several times), short for IS by Abbreviationfinder, Iceland is a republic with parliamentary rule. The president appoints the government, which is responsible for the legislative everything. The president has mainly ceremonial duties. The Icelandic everything is the world’s oldest parliament, founded in 930.
The President is elected every four years in direct elections and can be re-elected an unlimited number of times. Formally, the executive power is shared between the president and the government, but in practice it lies with the government.
- Countryaah: Total population and chart of Iceland for years of 2020, 2021, 2022, 2023 and 2024. Also covers population density, birth rate, death rate and population growth rates.
The Althingi (Alþingi) 63 members are elected by the people every four years according to a proportional system. A party must get five percent of the vote in order to take a seat in everything. The voting age is 18 years.
The Icelandic legal system has its basis mainly in Danish law but also in Norwegian. Modern legislation follows the Nordic pattern, but there are a few exceptions where old Icelandic laws from 1281 still apply. The judiciary has two bodies: local courts and a supreme court. There are also some specialized courts, such as courts of maritime and commercial matters. The death penalty was abolished in 1928.
The Independence Party (Independence Party) was founded in 1929 and is referred to as a liberal conservative. It primarily represents the interests of the business community and advocates low taxes, but also strives for a well-functioning welfare state. It protects Iceland’s NATO membership and the good relations with the United States. However, the party has opposed an Icelandic entry into the EU.
The Independence Party dominated Icelandic party politics until 2009, but did not have its own majority in everything. It has over the years co-operated with both the EU-friendly Social Democratic Alliance (Samfylkingin, SDA) and EU opponents within the Progress Party (the Progress Party).
The Progress Party was formed as a peasant party in 1916. It is a middle party with traditional support among farmers and fishermen. The party emphasizes national independence and the importance of the country being self-sufficient in agriculture and fishing.
The SDA was formed in 1999 through a merger of the Social Democratic Party, the Left Socialist Folk Alliance and the Feminist Women’s List. The SDA emphasizes the need for a strong welfare state. In 2013, the SDA changed its name to the Alliance-Iceland Social Democratic Party (Samfylkingin-Equalist Party Islands), often called just the Alliance.
The Left-Green (Vinstrihreyfingin-green supply) was also formed in 1999, when it broke out of the Folkalliance since this party decided to join the SDA. The Left-Green policy is characterized by environmental commitment, EU resistance and skepticism towards Iceland’s NATO membership.
In the wake of the banking crisis in 2009 (see Modern History and Economy), the Citizens’ Movement (Borgarahyfingin) was formed, which entered everything in the new election that year, at the same time as the Liberal Party (Liberal Party) fell away. Thereafter, the Citizens’ Movement fell apart and dissolved.
In the 2013 election, two newly formed parties entered everything: the bright future (bright future) and the pirate party (pirate). Bright future party programs are similar to the Alliance’s (for example, EU-friendly) but the party calls itself liberal. Bright future fell out of everything in the new election in 2017. The Pirate Party is similar to its Swedish counterpart and advocates free download from the Internet as well as direct democracy. In the new election in 2016, the newly formed Liberal Party The Resurrection (Vidseisn, sometimes called the Reform Party) was elected into everything.
Icelandic politics lacks a clear right-left scale. The Independence Party and the Social Democrats have been striving to modernize Iceland, while the Progress Party and the Left have been quick to protect traditional Icelandic society.
The economic crisis is exacerbated
At year-end, the Icelandic krona lost about 45 percent of its value compared to the beginning of the year. Food prices have risen by almost a third in the past year, and inflation is up 18 percent.
The saucepan revolution begins
Every Saturday, thousands of people in Reykjavík demonstrate with demands for the government’s departure. They want new elections for everything and a new management for the central bank. The demonstrations are renamed the pan revolution because the crowd, among other things, is knocking loudly with pot lid.
Emergency loans after difficult concessions
In order to obtain support from the International Monetary Fund (IMF), the government is forced to give in to demands from the UK and the Netherlands for compensation to British and Dutch savers who lost money in the bank of Icesave’s bankruptcy. Compensation is expected to amount to a total of EUR 3.8 billion and further pressures the central government finances. The IMF decides on EUR 1.6 billion in support loans to Iceland. The Nordic countries offer EUR 1.8 billion in loans.
The state takes over large banks
Everything is passed by a law that allows the government to take control of the banks’ operations. The state takes over the three major banks and guarantees the savings of Icelandic customers, but not the savings of foreign customers.
The krona falls dramatically
In one day, the Icelandic currency loses 30 percent of its value. Iceland’s three major banks Kaupthing (Kaupþing), Landsbanki and Glitnir receive an acute shortage of capital and are forced to sell assets abroad. The value of banks’ liabilities and commitments is estimated at ten times Iceland’s gross domestic product (GDP).
Acute financial crisis
When the American investment bank Lehman Brothers goes bankrupt, the international loan market stops. Iceland is facing a financial crisis. The krona falls in value and Iceland’s third largest bank, Glitnir, is nearing bankruptcy. To save the bank, the state buys 75 percent of its shares.
Presidential elections are canceled
The planned presidential election is canceled because there is no counter candidate for incumbent president, Ólafur Ragnar Grímsson.