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| V. | Government |
Iceland is governed under a constitution that became effective when the country achieved full independence from Denmark in 1944. Iceland has no official armed forces of its own except for a small number of coast guard personnel. Iceland is a member of the North Atlantic Treaty Organization (NATO), and it permits the United States to base military forces on the island.
| A. | Executive |
The head of state of Iceland is a president, who is elected by universal suffrage by persons aged 18 and older to a four-year term. The president has little formal power. The country’s chief executive is a prime minister, who is responsible to the parliament. The prime minister, assisted by a cabinet of ministers, holds real executive power.
| B. | Legislature |
The parliament of Iceland is the Althing, which has met almost continually since its establishment in ad 930. The Althing is considered the oldest parliament in Europe and is often referred to as “the grandmother of parliaments.” The power of the Althing declined after 1262, and it ceased to function from 1800 to 1843—the year it became a consultative assembly. It regained the full powers of a legislature in 1904.
The Althing was converted from a bicameral to a unicameral system in 1991. It has 63 members, 54 elected to four-year terms under a system of proportional representation and 9 allotted to the political parties based on their relative vote totals in the elections.
| C. | Political Parties |
The leading political organizations of Iceland are the center-right Independence Party; the social democratic Alliance coalition; the Progressive Party, a liberal agrarian group; the Left-Green Movement; and the free-market oriented Liberal Party. Governments in Iceland are generally formed by coalitions.
| D. | Local Government |
Iceland is divided into about 100 municipalities. The municipalities have significant autonomy and administer many important local affairs. These include responsibility for primary and secondary education; infrastructure, such as road maintenance, electric power, and water supply; and the provision of health and social welfare. Each municipality is governed by an elected council.
| E. | Judiciary |
The highest tribunal of Iceland is the supreme court, made up of a chief justice and seven other justices appointed by the president. Other judicial bodies include district and special courts.