Iceland
Jón Elvar Guðmundsson
Logos Legal Services
Reykjavík, Iceland
Introduction
Iceland is an island located in the North Atlantic Ocean, with a total area of
103,000 square kilometers and a population of approximately 320,000. It
controls 758,000 square kilometers of the North Atlantic Ocean within its
economic zone. Iceland is located on the Mid-Atlantic Ridge and is volcanically
and geologically active on a large scale.
The settlement of Iceland is believed to have started in approximately 874 AD
and the Icelandic Parliament, called the Althingi, was established in 930 AD.
The Althingi convened each summer at Thingvellir and gradually adopted a
uniform law. The commonwealth lasted until 1262, when Iceland signed the Old
Covenant, which brought Iceland under the Norwegian crown. Norway came
under the rule of Denmark in 1380; consequently, Iceland came under the rule of
Danish monarchies.
Iceland became one of the poorest countries in Europe in the following
centuries. Denmark granted Iceland a constitution and limited home rule in
1874, which was expanded in 1904. In 1918, Iceland gained sovereignty in a
royal union with Denmark. Iceland finally became an independent republic on
17 June 1944, when the Republic of Iceland was established, with Sveinn
Bjornsson as the first president.
Today, Iceland is a progressive, modern European society with a high standard
of living and advanced technology. The educational system in Iceland is one of
the best in the world. The global recession hit Iceland hard in October 2008,
when Iceland’s three largest private banks experienced major liquidity problems.
As a result, all the major commercial banks in Iceland were taken under
government administration. A majority of the companies listed on the Icelandic
Stock Exchange collapsed, and the Central Bank of Iceland imposed restrictions
on foreign exchange transactions.
Despite these setbacks, the Icelandic economy remains strong, and Iceland is
moving toward economic recovery with multilateral assistance, the International
Monetary Fund (IMF) playing a key role. Iceland’s natural resources -- such as
clean energy, a strong infrastructure, and a well-educated workforce -- provide
Jón Elvar Guðmundsson, Logos Legal Services, Reykjavík, Iceland