Iceland

Compiled from the July 2007 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:

Republic of Iceland

PROFILE

Geography

Area: 103,000 sq. km. (39,600 sq. mi.); about the size of Virginia or slightly larger than Ireland.

Cities: Capital—Reykjavik (pop. 117099). Other towns—Kópavogur (27,835), Hafnarfjorour (24,111), Akureyri (16,887).

Terrain: Rugged.

Climate: Maritime temperate.

Highest elevation: Hvannadalsh-njúkur at Vatnajökull Glacier, at 2,111 meters (6,925 ft.).

People

Nationality: Noun—Icelander(s). Adjective—Icelandic.

Population: (April 1, 2007) 309,699.

Annual growth rate: 2.6%.

Ethnic groups: Relatively homogenous mixture of descendants of Norwegians and Celts.

Religions: Evangelical Lutheran, 86%.

Languages: Icelandic.

Education: Compulsory up to age 16. Attendance—99%. Literacy—99.9%.

Health: Infant mortality rate—2.9/ 1,000. Life expectancy—men 79.4 years, women 83 years.

Work force: (2007, 176,300) Commerce—30.7%; manufacturing—9.5%; fishing/fish processing—5.0%; construction—8.7%; transport and communications—7.0%; agriculture—3.8%; government, education, and health—27.7%; other services—7.6%.

Unemployment: (2007) 2.0%.

Government

Type: Semi-presidential, parliamentary.

Independence: 1918 (became “sovereign state” under Danish Crown); 1944 (establishment of republic).

Constitution: 1874.

Government branches: Executive—president (head of state), prime minister (head of government), cabinet (12 ministers). Legislative—63-member unicameral parliament (Althingi). Judicial—Supreme Court, district courts, special courts.

Political subdivisions: 26 administrative districts and 79 municipalities.

Political parties: Independence (IP), Progressive (PP), Social Democratic Alliance (SDA), Left-Green Party (LGP), Liberal Party (LP).

Suffrage: Universal 18 years and above.

National holidays: June 17, anniversary of the establishment of the republic.

Economy

GDP: (2006) $18.4 billion.

GDP growth rate: (2005) 5.8%; (2006) 2.6%.

Per capita GDP: (2006) $53,766.

Inflation rate: (2007) 4%.

Budget: (2007) $6 billion.

Annual budget surplus: (2006) 1.4% of GDP.

Net public debt: (2007) 17% of GDP. Foreign aid: as part of 2005 Budget: 0.18% of GDP.

Natural resources: Marine products, hydroelectric and geothermal power.

Agriculture: Products—potatoes, tomatoes, cucumbers, turnips, livestock.

Industry: Types—aluminum smelting, fishing and fish processing technology, ferro-silicon alloy production, hydro and geothermal power, tourism, information technology.

Trade: Exports of goods (2006)—$3.9 billion: marine products 51.2%, industrial products 38.3%, agriculture 1.8%, and miscellaneous 8.7%. Partners—EU 74.8% (U.K. 18%, Germany 17%, Netherlands 11%, Spain 6%, Denmark 5%); U.S. 10.8% ($421 million); Japan 2.1%. Imports (2006)—$6.9 billion: industrial supplies 27%; capital goods, parts, accessories 23%; consumer goods 20%; transport equipment 21.1%; food and beverages 9%; fuels and lubricants 8%. Partners—EU 64.7% (Germany 13%, Denmark 9%, U.K. 8%, Sweden 7%, Netherlands 7%); U.S. 12.8% ($208 million); EFTA 9%; Japan 4.1%.

GEOGRAPHY

Iceland is a volcanic island in the North Atlantic Ocean east of Greenland and immediately south of the Arctic Circle. It lies about 4,200 kilometers (2,600 mi.) from New York and 830 kilometers (520 mi.) from Scotland. About 79% of Iceland's land area, which is of recent volcanic origin, consists of glaciers, lakes, a mountainous lava desert (highest elevation 2,000 meters—6,590 ft.— above sea level), and other wasteland. About 28% of the land is used for grazing, and 1% is cultivated. The inhabited areas are on the coast, particularly in the southwest where about 60% of the population lives. Because of the Gulf Stream's moderating influence, the climate is characterized by damp, cool summers and relatively mild but windy winters. In Reykjavik, the average temperature is 11°C (52°F) in July and -1°C (30°F) in January.

PEOPLE

Most Icelanders are descendants of Norwegian settlers and Celts from the British Isles, and the population is remarkably homogeneous. According to Icelandic Government statistics, 93% of the nation's inhabitants live in urban areas (localities with populations greater than 200) and about 60% live in the Reykjavik metropolitan area. Of the Nordic languages, the Icelandic language is closest to the Old Norse language and has remained relatively unchanged since the 12th century. About 91% of the population belongs to the state church, the Evangelical Lutheran Church, or other Lutheran Churches. However, Iceland has complete religious liberty, and about 20 other religious congregations are present.

Most Icelandic surnames are based on patronymy, or the adoption of the father's first given name. For example, Magnus and Anna, children of a man named Petur, would hold the surname Petursson and Petursdottir, respectively. Magnus’ children, in turn, would inherit the surname Magnusson, while Anna's children would claim their father's first given name as their surname. Women normally maintain their original surnames after marriage. This system of surnames is required by law, except for the descendants of those who had acquired family names before 1913. Most Icelanders, while reserved by nature, rarely call each other by their surnames, and even phone directories are based on first names. Because of its small size and relative homogeneity, Iceland holds all the characteristics of a very close-knit society.

Cultural Achievements

The Sagas, almost all written between 1180 and 1300 A.D., remain Iceland's best-known literary accomplishment, and they have no surviving counterpart anywhere in the Nordic world. Based on Norwegian and Icelandic histories and genealogies, the Sagas present views of Nordic life and times up to 1100 A.D. The Saga writers sought to record their heroes’ great achievements and to glorify the virtues of courage, pride, and honor, focusing in the later Sagas on early Icelandic settlers. The best-known Icelandic writer of the 20th century is the 1955 Nobel Prize winner Halldor Kiljan Laxness. The literacy rate is 99.9%, and literature and poetry are a legendary passion with the population. Per capita publication of books and magazines is the highest in the world.

Unlike its literature, Iceland's fine arts did not flourish until the 19th century because the population was small and scattered. Iceland's most famous painters are Ásgrímur Jónsson, Jón Stefánsson, and Jóhannes Kjarval, all of whom worked during the first half of the 20th century. The best-known modern sculptor, Ásmun-dur Sveinsson (1893-1982), drew his inspiration from Icelandic folklore and the Sagas for many of his works. Today, Kristján Jóhannsson is Iceland's most famous opera singer, while pop singer Björk and progressive rock band Sigur Rós are well known internationally.

HISTORY

Iceland was settled in the late 9th and early 10th centuries, principally by people of Norse origin. In 930 A.D., the ruling chiefs established a republican constitution and an assembly called the Althingi (Alpingi) the oldest parliament in the world. Iceland remained independent until 1262, when it entered into a treaty establishing a union with the Norwegian monarchy. Iceland passed to Denmark in the late 14th century when Norway and Denmark were united under the Danish crown.

In the early 19th century, national consciousness revived in Iceland. The Althingi had been abolished in 1800 but was reestablished in 1843 as a consultative assembly. In 1874, Denmark granted Iceland limited home rule, which was expanded in scope in 1904. The constitution, written in 1874, was revised in 1903, and a minister for Icelandic affairs, residing in Reykjavik, was made responsible to the Althingi. The Act of Union, a 1918 agreement with Denmark, recognized Iceland as a fully sovereign state united with Denmark under a common king. Iceland established its own flag, but Denmark continued to represent Icelandic foreign affairs and defense interests.

German occupation of Denmark in 1940 severed communications between Iceland and Denmark. Consequently, Iceland moved immediately to assume control over its own territorial waters and foreign affairs. In May 1940, British military forces occupied Iceland. In July 1941, responsibility for Iceland's defense passed to the United States. Following a plebiscite, Iceland formally became an independent republic on June 17, 1944. In October 1946, the Icelandic and U.S. Governments agreed to terminate U.S. responsibility for the defense of Iceland, but the United States retained certain rights at Keflavik. Iceland became a charter member of the North Atlantic Treaty Organization (NATO) in 1949. After the outbreak of hostilities in Korea in 1950, and pursuant to the request of NATO military authorities, the United States and Iceland agreed that the United States should again make arrangements for Iceland's defense. A bilateral defense agreement signed on May 5, 1951, remains in force, even though the U.S. military forces are no longer permanently stationed in Iceland. Iceland is the only NATO country with no standing military of its own.

GOVERNMENT

The president, elected to a 4-year term, has limited powers. When Iceland became a republic in 1944, the post of president was created to fill the void left by the Danish king. Although the president is popularly elected and has limited veto powers (he can force a public referendum on a proposed law by refusing to sign it—a power that has only once been exercised), the expectation is that the president should play the same limited role as a monarch in a traditional parliamentary system.

The prime minister and cabinet exercise most executive functions. The parliament is composed of 63 members, elected every 4 years unless it is dissolved sooner. Suffrage for presidential and parliamentary elections is universal for those 18 and older, and members of the parliament are elected on the basis of parties’ proportional representation in six constituencies. The judiciary consists of the Supreme Court, district courts, and various special courts. The constitution protects the judiciary from infringement by the other two branches.

Principal Government Officials

Last Updated: 2/1/2008

President: Olafur GRIMSSON

Prime Minister: Geir H. HAARDE

Min. of Commerce: Bjorgvin SIGURDSSON

Min. of Communication & Transport: Kristjan MOLLER

Min. of Education, Culture, Research & Development: Thorgedur Katrin GUNNARSDOTTIR

Min. of Environment: Thorunn SVEINBJARNADOTTIR

Min. of Finance: Arni M. MATHIESEN

Min. of Fisheries & Agriculture: Einar K. GUDFINNSSON

Min. of Foreign Affairs & External Trade: Ingibjorg Solrun GISLADOTTIR

Min. of Health & Social Security: Gudlaugur Thor THORDARSON

Min. of Industry: Ossur SKARPHEDINSSON

Min. of Justice & Church Affairs: Bjorn BJARNASON

Min. of Social Affairs: Johanna SIGURDARDOTTIR

Dir., Central Bank of Iceland: David ODDSSON

Ambassador to the US: Albert JONSSON

Permanent Representative to the UN, New York: Hjalmar HANNESSON

Iceland maintains an embassy in the United States at 1156 - 15th Street, NW, Suite 1200, Washington, DC 20005 [tel. (202) 265-6653], and a consulate general at 800 Third Ave, 36th floor, New York, NY 10022 [tel. (212) 593-2700]. Iceland also has 25 honorary consulates in major U.S. cities.

POLITICAL CONDITIONS

Iceland's current government coalition was formed after the May 2007 parliamentary elections by the conservative Independence Party (IP) and the center-left Social Democratic Alliance. The two parties hold a large majority in parliament, with 43 out of 63 seats.

The current government replaced a coalition of the Independence Party and the Progressive Party (PP) that had been in power since 1995. Longtime IP leader Davio Oddsson was Prime Minister 1991-2004, making him the longest-serving prime minister in Europe (from 1991 to 1995, the IP was in coalition with the Social Democratic Party). PP chairman and former Foreign Minister Halldor Asgrimsson took over as Prime Minister on September 15, 2004, as part of a post-election deal with the Independence Party, and Oddsson became Foreign Minister. Oddsson retired from his ministerial position September 27, 2005, with former Finance

Minister Geir Haarde becoming Foreign Minister. Oddsson also announced his intention shortly to step down as IP chairman, with Haarde elected to the post at a party national conference in October. In early June 2006 Asgrímsson announced his withdrawal from politics as Prime Minister, parliamentarian, and chairman of the Progressive Party. Haarde became the third Prime Minister during the current electoral term on June 15, 2006, and Valgerour Sverrisdóttir (Progressive Party) took over as Foreign Minister. In May 2007 the Independence Party and the Social Democratic Alliance formed a new government after an abysmal showing by the Progressive Party. Geir Haarde continued as Prime Minister, and the chairman of the Social Democratic Alliance, Ingibjörg Sólrún Gísladóttir, took over the reins at the Ministry for Foreign Affairs.

The centrist agrarian Progressive Party has been a party to government for over 30 years in the past 4 decades. Its support dropped from 23% in the 1995 parliamentary election to 12% in 2007. The party has dealt with internal instability in the past few years, and power struggles have lead to frequent change in the party's leadership. Chairman Jon Sigurosson stepped down after the 2007 elections and was replaced by the deputy chairman, Guoni Agustsson.

Three left-wing parties—the Social Democratic Party, the People's Alliance, and the Women's List—formed an electoral coalition prior to the 1999 parliamentary election in the hope of mounting a credible challenge to the long-dominant Independence Party. But the dream of creating a united left coalition failed when disaffected leftists formed a new splinter party called the Left Green Movement, led by former deputy People's Alliance leader Steingrimur Sigfus-son. With this defection, the left coalition won a disappointing 27% of the vote (17 seats) in the 1999 election, four percentage points below what the three parties had won running separately in 1995. Their 31% (20 seats) showing in 2003 recaptured this ground but did not suffice to topple the government. The Left Greens won a respectable 9% of the vote (5 seats) in 2003, but in the 2007 election they improved significantly, with 14% of the total vote (9 seats). Another new faction, the Liberal Party, won just over 7% (4 seats) in 2003 based on its strong opposition to the current fishing management system, and clung to roughly 6% in 2007.

Despite the poor electoral showing in 1999, the three left-wing parties decided to merge formally in 2000, creating a new party, the Social Democratic Alliance, led by Ingibjörg Sól-run Gisladottir. The party has found it difficult to reconcile the widely varying foreign policy views of its members, which range from strong support for NATO membership to pacifism and a desire for neutrality.

Iceland's current President is Ólafur Ragnar Grímsson, a former political science professor who led the far-left People's Alliance in 1987-95 and served as Finance Minister in 1988-91. Although Grímsson won office with only a 41% plurality in 1996, he was not challenged for re-election in 2000. This follows a well-established tradition of giving deference to sitting presidents. He was re-elected again on June 26, 2004. Once in office, a president can generally count on serving as many terms as he or she likes, assuming good behavior. Reflecting the belief that the president is “above politics,” presidential candidates run for election as individuals—since 1952, political parties have played no role in nominating or endorsing candidates. President Grímsson has occasionally drawn criticism that he breaches the bounds of presidential etiquette by being too outspoken on sensitive political issues.

ECONOMY

Marine products account for the majority of Iceland's exports of goods. Other important exports include aluminum, ferro-silicon alloys, equipment and electronic machinery for fishing and fish processing, and pharmaceuticals. Information technology and life sciences and related services are important growth areas. The vast majority of Iceland's exports go to the European Union (EU) and the European Free Trade Association (EFTA) countries, followed by the United States and Japan. The U.S. is by far the largest foreign investor in Iceland, and the country's largest supplier of imported services (e.g., financial and franchise services, movies/TV programs/music, tourism). Iceland's relatively liberal trading policy was strengthened by accession to the European Economic Area in 1994 and by the Uruguay Round agreement, which also brought significantly improved market access for Iceland's exports, particularly seafood products. However, the agricultural sector remains heavily subsidized and protected.

In recent decades, Iceland's economy has been prone to inflation due to periods of rapid growth and its dependence on just a few key export sectors (i.e., fish, and increasingly tourism and aluminum production), which can fluctuate significantly from one year to the next. The 1970s oil shocks hit Iceland hard. Inflation rose to 43% in 1974 and 59% in 1980, falling to 15% in 1987 but rising to 30% in 1988. Since 1990, due to economic reforms and deregulation, inflation has dramatically fallen, averaging around 4% in the 1990s. Due to several years of strong economic growth, Iceland experienced the most positive economic period in its history during that decade. However, as with many advanced countries, Iceland's economy experienced a mild recession during 2002 due to global conditions. That recession was short-lived, and healthy growth of 3% was registered during 2003. In 2005 the economy boomed, growing 5.8%, and inflation was close to the Central bank's upper limit (4%) at 3.95%, while unemployment decreased to about 3.2%. The economy suffered a setback in spring 2006 when credit rating agencies and other international financial firms released a number of reports raising questions about the state of the Icelandic economy and the activities and stability of Iceland's major banks. These reports were widely covered in the international financial press, causing a marked drop in the value of the Icelandic krona and of shares listed on the Icelandic stock exchange. Since then the situation has calmed down, but there is no question that certain imbalances have emerged in the Icelandic economy, including a high current account deficit, high inflation and high private sector debt levels. It remains an open question whether these imbalances render Iceland particularly vulnerable to an economic crisis. Foreign confidence in the Icelandic economy is important to maintain the country's skillful use of foreign capital. Icelandic businessmen have become well known for risk taking, decisiveness, and swiftness in their investments. Wealthy Icelanders have successfully invested overseas, especially in the retail and real estate markets in Denmark and U.K. and telecom, pharmaceutical, banking, and financial sectors in Eastern Europe. This recent success has for the first time created a “super-rich” elite in Icelandic society.

Iceland has few proven mineral resources. Abundant hydroelectric and geothermal power sources allow over 90% of the population to enjoy electricity and heating from these natural resources. The Kárahnjúkar hydroelectric project is the largest single station, with capacity of 690 megawatts (mw). The other major hydroelectric stations are at Búrfell (270 mw), Hrauneyjarfoss (210 mw), Sigalda (150 mw) and Blanda (150 mw). Iceland is exploring the feasibility of exporting hydroelectric energy via submarine cable to mainland Europe and also actively seeks to expand its power-intensive industries, particularly aluminum smelting plants.

Iceland-based Nordural Aluminum is a wholly owned investment by Century Aluminum of Monterey, California. The plant employs more than 450 people and recently expanded to a production capacity of 220,000 tons per year. A new smelter owned by Alcoa, another U.S.-owned aluminum company, began operations in June 2007. The smelter will have a production capacity of 346,000 tons per year when fully operational. The Karah-njukar hydroelectric power plant, completed in early 2007, was built in connection with Alcoa's smelter. A total of over $2 billion has been invested in the power plant and smelter, the largest economic project in Icelandic history.

Iceland has no railroads. Organized road building began about 1900 and has greatly expanded in the past decade. The current national road system connecting most of the population centers is largely in the coastal areas and consists of about 13,000 kilometers (8,125 mi.) of roads with about 4,330 kilometers (2,706 mi.) paved. Regular air and sea service connects Reykjavik with the other main population centers. The national airline, Icelandair, flies from Iceland to Europe and North America, and is one of the country's largest employers. Iceland became a full member of the European Free Trade Association in 1970 and entered into a free trade agreement with the European Community in 1973. Under the European Economic Area agreement, which took effect January 1, 1994, there is basically free cross-border movement of capital, labor, goods, and services between Iceland, Norway, and the EU countries.

DEFENSE

The U.S. and Iceland signed a bilateral agreement in 1951 stipulating that the U.S. would make arrangements for Iceland's defense on behalf of NATO and providing for basing rights for U.S. forces in Iceland. In March 2006 the U.S. announced it would continue to provide for Iceland's defense but without permanently basing forces in the country; Naval Air Station Keflavik closed in September 2006 after 55 years. The Government of Iceland expressed disappointment, and even opposition politicians opposed to the U.S. military presence criticized the manner of the closing, but bilateral discussions ensued to explore new ways of ensuring the country's security, with an emphasis on a “visible defense.” Negotiations concluded with a Technical Agreement on base closure issues (e.g., facilities return, environmental cleanup, residual value) signed on September 29, 2006, and a “Joint Understanding” on future bilateral security cooperation (focusing on defending Iceland and the North Atlantic region against emerging threats such as terrorism and trafficking) signed by the Secretary of State, Prime Minister Haarde and Foreign Minister Sverrisdóttir in Washington on October 11, 2006. The U.S. also cooperated with local officials to mitigate the impact of job losses at the Air Station, notably by encouraging U.S. investment in industry and tourism development in the Keflavik area. The Government of Iceland announced in spring 2007 that a large portion of the former base site would be converted into the university-level “Atlantic Center of Excellence” with operations scheduled to begin in fall 2007.

Cooperative activities in the context of the new agreements began almost immediately, with the arrival of the amphibious ship USS Wasp in Reykjavik on October 12, 2006 (the first U.S. Navy port visit since 2002) to demonstrate the Navy's rapid reaction capability and to support counterterrorism training by units of Iceland's Coast Guard and police. In November 2006 a U.S. Navy P-3 patrol aircraft arrived at Keflavik for joint search and rescue, disaster surveillance, and maritime interdiction training. Further joint endeavors, including a U.S.-led air defense exercise, are slated for the summer of 2007.

The Government of Iceland contributes financially to NATO's international overhead costs and recently has taken a more active role in NATO deliberations, planning, and peacekeeping. Iceland hosted the NATO Foreign Ministers’ Meeting in Reykjavik in June 1987 and again in May 2002. Iceland hosted the NATO Military Committee in April 2007 and will host the NATO Parliamentary Assembly in October 2007.

FOREIGN RELATIONS

Iceland maintains diplomatic and commercial relations with practically all nations, but its ties with other Nordic states, with the U.S., and with the other NATO member states are particularly close. Icelanders remain especially proud of the role Iceland played in hosting the historic 1986 summit in Reykjavik between President Reagan and Soviet leader Gorbachev, which set the stage for the end of the Cold War.

Iceland has greatly increased its international profile since the early 1990s. Since the mid-1990s, Iceland has opened a number of missions overseas for a total of 22, including an embassy in Beijing, giving Iceland a diplomatic presence in all five permanent member countries of the UN Security Council. Not coincidentally, it has announced its candidacy to serve on the UN Security Council in 2009-2010. In the past few years, Iceland has also established missions to the Council of Europe in Strasbourg and to the Organization for Security and Cooperation in Vienna. In 1998, it bolstered its delegation to NATO, assigning a permanent representative to the military committee for the first time ever.

Notwithstanding its status as an unarmed nation, Iceland has been eager to do its part to contribute to the maintenance of international peace and security. One of the niches it is helping to fill is in civilian peacekeeping and crisis management. It took a significant step forward in this area in 2001 by launching its Icelandic Crisis Response Unit (ICRU). In setting up the ICRU, the Ministry for Foreign Affairs established a roster of over 100 experts in various occupations (police officers, nurses, doctors, lawyers, engineers, journalists, etc.) who will be specially trained and prepared to deploy to trouble spots abroad on short notice.

Peacekeeping has been a permanent item in the Icelandic state budget since 1994, and Iceland has been an active member of the UN Peacekeeping Committee since 1997. With the formal establishment of the ICRU, the government decided to increase the number of deployed peacekeepers to 50 by 2006. The key emerging niche capability of the ICRU is airport administration following the successful management of the airport in Pristina, Kosovo, in 2003 and of the airport in Kabul, Afghanistan, in 2004-2005.

Icelanders have a strong emotional bond with the Baltic states, and Iceland prides itself on being the first country to have recognized these countries’ claim for independence in 1991.

Membership in International Organizations

Iceland is a member of the following organizations: Arctic Council, Barents Euro-Arctic Council; Council of Baltic Sea States; Council of Europe; European Economic Area; European Free Trade Organization; EFTA Court; EFTA Surveillance Authority; North Atlantic Treaty Organization; Organization for Security and Cooperation in Europe; Organization for Economic Cooperation and Development; International Criminal Police Organization; International Council for the Exploration of the Sea; International Hydrographic Organization; International Maritime Satellite Organization; International Union for the Publication of Custom Tariffs; Nordic Council; North-East Atlantic Fisheries Commission; North Atlantic Salmon Conservation Organization; the International Whaling Commission; and the North Atlantic Marine Mammal Commission.

It also is a member of the United Nations and most of its related organizations, specialized agencies, and commissions, including the International Monetary Fund, World Trade Organization, World Tourism Organization, Food and Agricultural Organization, International Atomic Energy Agency, International Civil Aviation Organization, International Fund for Agricultural Development; Industrial Development Organization; International Labor Organization, International Maritime Organization, International Telecommunications Union, UN Educational, Scientific, and Cultural Organization, Universal Postal Union, World Health Organization, and World Meteorological Organization; World Intellectual Property Organization; International Bank for Reconstruction and Development; International Development Association; International Finance Corporation Multilateral Investment Guarantee Agency and International Center for Settlement of Investment Disputes; UN Conference on Disarmament; Economic Commission for Europe; UN High Commissioner for Refugees; Office for the High Commissioner for Human Rights; Commission of Human Rights; UN Conference on Trade and Development.

U.S.-ICELANDIC RELATIONS

U.S. policy aims to maintain close, cooperative relations with Iceland, both as a NATO ally and as a friend interested in the shared objectives of enhancing world peace; respect for human rights; economic development; arms control; and law enforcement cooperation, including the fight against terrorism, narcotics, and human trafficking. Moreover, the United States endeavors to strengthen bilateral economic and trade relations.

Principal U.S. Embassy Officials

Last Updated: 2/19/2008

REYKJAVIK (E) Laufasvegur 21, IS-101 Reykjavik, Iceland, APO/FPO 5640 Reykjavik Place, Washington DC 20521-5640, (354) 562-9100, Fax (354) 562-9118, Workweek: Monday to Friday/0800-1700, Website: http://iceland.usembassy.gov.

TRAVEL

Consular Information Sheet

October 11, 2007

Country Description: Iceland is a highly developed, stable democracy with a modern economy. The national language is Icelandic, but English is widely spoken, especially in the capital city of Reykjavik.

Entry Requirements: A valid passport is required. U.S. citizens do not need visas for tourist or business stays of up to 90 days. That period begins when entering any of the following countries which are parties to the Schengen agreement: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, and Sweden. For further information in English concerning entry requirements for Iceland, please contact the Icelandic Directorate of Immigration via their web site at http://www.utl.is.

Note: Although European Union regulations require that non-EU visitors obtain a stamp in their passports upon initial entry to a Schengen country, many borders are not staffed with officers carrying out this function. If an American citizen wishes to ensure that his or her entry is properly documented, it may be necessary to request a stamp at an official point of entry. Under local law, travelers without a stamp in their passports may be questioned and asked to document the length of their stay in Schengen countries at the time of departure or at any other point during their visit, and could face possible fines or other repercussions if unable to do so.

Safety and Security: There have been no terrorist attacks and very few criminal attacks affecting Americans in Iceland. However, like other countries in the Schengen area, Ice-land's open borders with its Western European neighbors allow the possibility of terrorists or other criminals entering/exiting the country with anonymity. Americans are reminded to remain vigilant with regard to their personal security and to exercise caution.

For the latest security information, Americans traveling abroad should regularly monitor the Department of State Bureau of Consular Affair's Internet site, where the current Worldwide Caution Travel Alert, Travel Warnings and Travel Alerts can be found. Up-to-date information on safety and security can also be obtained by calling 1-888-407-4747 toll-free in the United States, or, for callers outside the United States and Canada, a regular toll line at 1-202-501-4444.

Crime: Iceland has a relatively low crime rate, but minor assaults, automobile break-ins and other street crimes do occur, especially in the capital city of Reykjavik. Tourists should be aware that downtown Reykjavik can become especially disorderly in the early morning hours on week-ends. Violent crime is rare, but it does occasionally occur.

Information for Victims of Crime: The loss or theft of a U.S. passport abroad should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. If you are the victim of a crime while overseas, in addition to reporting to local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, contact family members or friends and explain how funds could be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed. Iceland maintains a limited crime victim's assistance program through the Ministry of Justice. Please contact the U.S. Embassy in Reykjavik for further details. Those suffering psychological trauma or victims of rape may receive psychological assistance by contacting the University of Iceland's Hospital Psychological Trauma Center at 354-543-2000.

Medical Facilities and Health Information: Excellent medical facilities are available in Iceland. To obtain emergency medical assistance anywhere in the country, dial 112. To obtain non-emergency medical assistance in the Reykjavik metropolitan area dial 544-4114 during business hours and outside of normal business hours, dial 1770. The nurse who answers will offer advice on how to handle the problem, suggest that the patient come to an after-hours clinic, or send a physician to make a house call. For information on after-hours dental care, call 575-0505.

Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention's hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747) or via the CDC's web site at http://wwwn.cdc.gov/travel. For information about out-breaks of infectious diseases abroad, consult the World Health Organization's web site at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith.

Medical Insurance: Most medical services in Iceland, including emergency care, require full payment at the time of service. Payment to the medical facility must be paid in full before an individual will be able to leave the country. The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation. Additional travel insurance to cover the price of medical evacuations is also strongly recommended.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Iceland is provided for general reference only, and may not be completely accurate in a particular location or circumstance.

Less than a third of Iceland's total road network is paved (2,262 miles of paved road vs. 5,774 miles of gravel or dirt road). Most of the 900-mile ring road (Highway 1) that encircles the country is paved, but many other roads outside the capital, especially those that run through the center of the country, are dirt or gravel tracks. Even those roads that are paved tend to be narrow and lack a shoulder or margin. Most bridges are only one lane wide, requiring drivers to be cognizant of oncoming traffic.

Extreme care should be taken when driving in rural areas during the winter (October through March), when daylight hours are limited and the weather and road conditions can change rapidly. Many routes in the interior of the country are impassable until July, due to muddy conditions caused by snowmelt. When driving in the interior, consider traveling with a second vehicle and always inform someone of your travel plans. For information on current road conditions throughout the country, please call the Public Roads Administration (Vegagerdin) at 1777 or consult its web site at http://www.vegagerdin.is/english.

For recorded weather information in English, call the Icelandic Weather Office ( Vedurstofa Islands) at 902-0600, press 1 for English.

Icelandic law requires drivers to keep headlights on at all times. Talking on cell phones while driving is prohibited except when using a hands-free system, and is subject to a 5000 Icelandic Kronur fine. Unless otherwise posted, the speed limit is 50 km/h in urban areas and 30 km/h in residential areas. In rural areas, the speed limit depends on the type of road. On dirt and gravel roads, the speed limit is 80 km/h. On paved highways, the speed limit is 90 km/h. It is illegal to turn right on a red light. At four-way intersections, the right of way goes to the driver on the right; in traffic circles, to drivers in the inside lane. Many intersections in the capital have automatic cameras to catch traffic violators.

The use of seatbelts is mandatory in both the front and rear seats, and children under the age of six must be secured in a special car seat designed for their size and weight. Drivers are held responsible for any passenger under the age of 15 who is not wearing a seatbelt. No one who is less than 140 centimeters tall, weighs less than 40 kilograms, or is under the age of 12 is allowed to ride in a front seat equipped with an airbag.

Driving under the influence of alcohol is considered a serious offense in Iceland. The threshold blood alcohol test (BAT) level is very low. Drivers can be charged with DWI with a BAT as low as.05%. Drivers stopped under suspicion for DWI are usually given a “balloon” or Breathalyzer test. If the test is positive, a blood test is routinely administered. Under Icelandic law, a blood test cannot be refused and will be administered by force if necessary. The minimum punishment for a first offense is a fine of 50,000 Icelandic Kronur and the loss of driving privileges for two months.

U.S. citizens spending less than 90 days in Iceland may drive using their U.S. licenses.

Aviation Safety Oversight: The U.S. Federal Aviation Administration (FAA) has assessed the Government of Iceland's Civil Aviation Authority as being in compliance with International Civil Aviation Organization (ICAO) aviation safety standards for oversight of Iceland's air carrier operations. For more information, travelers may visit the FAA's web site at http://www.faa.gov.

Special Circumstances: Extreme care should be exercised when touring Iceland's numerous nature attractions, which include glaciers, volcanic craters, lava fields, ice caves, hot springs, boiling mud pots, geysers, waterfalls, and glacial rivers. There are few warning signs or barriers to alert travelers to potential hazards. Several tourists are scalded each year because they get too close to an erupting geyser, or because they fall or step into a hot spring or boiling mud pot. High winds and icy conditions can exacerbate the dangers of visiting these nature areas. Hikers and backpackers are well advised to stay on marked trails, travel with someone, notify a third party about their travel plans and check weather reports, as there are often no means of communication from remote locations. This is especially important as weather conditions in Iceland are subject to frequent and unexpected changes. Those planning visits to dangerous or remote locations in Iceland are strongly encouraged to register with the U.S. Embassy before beginning their journey and to leave a travel itinerary with local guides/ officials if planning to trek through remote parts of the country.

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country's laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses.

Persons violating Icelandic laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use or trafficking in illegal drugs in Iceland are strict, and convicted offenders can expect long jail sentences and heavy fines. Engaging in sexual conduct with children or using or disseminating child pornography in a foreign country is a crime, prosecutable in the United States.

Disaster Preparedness: Iceland is subject to natural disasters in the form of earthquakes, volcanic eruptions, avalanches and violent storms. Travelers should learn how to prepare for and react to such events by consulting the web site of Iceland's National Civil Defense Agency at http://www.almannavarnir.is. General information about natural disaster preparedness is available via the Internet from the U.S. Federal Emergency Management Agency (FEMA) at http://www.fema.gov.

Children's Issues: For information on international adoption of children and international parental child abduction, see the Office of Children's Issues website at http://travel.state.gov/family.

Registration and Embassy Locations: Americans living in or visiting Iceland are encouraged to register with the nearest U.S. Embassy or Consulate through the State Department's travel registration web site, and to obtain updated information on travel and security within Iceland. Americans without Internet access may register directly with the nearest U.S. Embassy or Consulate. By registering, American citizens make it easier for the Embassy or Consulate to contact them in case of emergency. The U.S. Embassy is located at Laufasvegur 21, tel. +354-562-9100; fax +354-562-9110. Information about consular services can be found in the Consular section of the Embassy home page at http://iceland.usembassy.gov.

International Adoption

June 2006

The information in this section has been edited from a report of the State Department Bureau of Consular Affairs, Office of Overseas Citizens Services. For more information, please read the International Adoption section of this book and review current reports online at http://travel.state.gov/family.

Disclaimer: The information in this flyer relating to the legal requirements of specific foreign countries is based on public sources and current understanding. Questions involving foreign and U.S. immigration laws and legal interpretation should be addressed respectively to qualified foreign or U.S. legal counsel.

Please Note: Prospective adoptive parents must be resident in Iceland to adopt. This flyer describes how to get pre-approved in Iceland to adopt in a third country.

Patterns of Immigration: Recent U.S. immigrant visa statistics indicate that only one immigrant visa was issued to an Icelandic orphan in the last five years.

Adoption Authority:

The Ministry of Judicial and Ecclesiastical Affairs
Arnarhvall on Lindargata
150 Reykjavik, Iceland
Tel: 011-354-560-9010
Fax: 011-354-552-7340
E-mail: [email protected]
Homepage: www.stjr.is.

Eligibility Requirements for Adoptive Parents:

• Applicants must be at least 25 years old, but not more than 45 years old;
• Good mental and physical state;
• Do not have a criminal record;
• Can financially support a family;
• Married couples or a male and a female that have lived together in a proxy marriage (cohabitation registered with the National Registry) for at least 5 years can adopt together;
• One of the married individuals or a male/female in a proxy marriage can adopt the partner's child or foster child with the partner's permission;
• One of the married individuals or a male/female in a proxy marriage can adopt a child without the partner's permission if the partner has vanished or his/her mental state would impede the adoption process;
• Individuals can adopt children in special circumstances and if the adoption benefits the welfare of the child.

Residency Requirements: Under the 1999 Adoption Act (Law no. 130), only foreigners who are resident in Iceland or “have a special connection to the country” are allowed to adopt children in Iceland.

Time Frame: The pre-approval pro-cesss, described below, will take three to six months. The length of time to adopt in a third country will depend on the child's country of origin.

Adoption Agencies and Attorneys: Íslensk ZEttleioing (Icelandic Adoption Society) is the only adoption agency in Iceland. Please see their website (only in Icelandic): http://www.isadopt.is.

Adoption Fees: The pre-approval certificate that is issued to prospective adoptive parents costs IKR. 2.250.00. Prospective adoptive parents can expect to pay for services pertaining to adoption in a third country.

Adoption Procedures: The first step to adopt a child is to apply for a pre-approval from the Ministry of Judicial and Ecclesiastical Affairs. Applicants can get the application forms on their website. Then they return the forms to Íslenslensk Ættleiðing (Icelandic Adoption Society -IAS) and the agency will send the forms to the Ministry and attach necessary documents.

The application with attached documents is sent to the Ministry of Judicial and Ecclesiastical Affairs which then asks the social services and the child protection agency in the applicants’ home town to give a report about the applicant's home and family environment. An employee from social services will contact the applicant and do a home study. This report is sent to the ministry which will take the decision based on this report. If the pre-approval is granted, then it is sent in English to IAS and the applicant gets a copy. The approval notice, which is valid for two years, will state that the applicant is permitted to adopt a child from a specific third country.

Required Documents:

• Application for pre-approval, Ministry of Judicial and Ecclesiastical Affairs, Skuggasundi, 150 Reykjavík. Telephone: 354-545-9000. Opening hours: Mon-Fri. 8:30—16.00;
• Birth certificate from applicant;
• Information about applicant on this form. (Re Application For Permission to Adopt. Re Application for Pre-Approval);
• Marriage certificate or certificate that proves proxy marriage of applicant;
• Certificate from the National Registry to show how long applicants have been living together. Marriage must have lasted at least one year and Proxy Marriage at least five years. The certificate can be sought at the National Registry in Iceland, Borgartúni 21a, 104 Reykjavík. Telephone: 354-569-2900;
• Police certificates from countries prospective adoptive parents resided for 3 months after the age of 16;
• Information about the applicant's health on the Information on Health Re application for Pre-Approval to Adopt a Child form;
• Doctors certificate for the adopting parent. Here you can get the
• Medical Certificate for Prospective Adoption Parent form, needs to be filled out by a doctor and the applicant;
• Certified copy of tax returns for the last two years;

The documents referenced above can be sought in Icelandic at:

Embassy of Iceland
1156 15th Street N.W., Suite 1200
Washington, D.C. 20005-1704
Tel.: (202) 265 6653
E-mail: [email protected]
http://www.iceland.org/us

Iceland also has a Consulate General in New York and honorary consulates around the United States.

U.S. Immigration Requirements: Prospective adopting parents are strongly encouraged to consult USCIS publication M-249, The Immigration of Adopted and Prospective Adoptive Children, as well as the Department of State publication, International Adoptions. Please see the International Adoption section of this book for more details and review current reports online at http://travel.state.gov/family.

U.S. Embassy
Laufasvegur 21,
101 Reykjavik, Iceland
Tel: (354) 562-9100
E-mail: [email protected]

Additional Information: Specific questions about adoption in Iceland may be addressed to the U.S. Embassy in Reykjavik. General questions regarding intercountry adoption may be addressed to the Office of Children's Issues, U.S. Department of State, CA/OCS/CI, SA-29, 4th Floor, 2201 C Street, NW, Washington, D.C. 20520-4818, toll-free Tel: 1-888-407-4747.