According to the 1944 Constitution (amended
several times), 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
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.
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 (Alţingi) 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
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.
(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
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
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
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
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.