Iceland gained full independence from Denmark in 1944 and formed its own republic, with a president as head of state and a prime minister as head of government. Though Iceland has its own traditions, it has been largely influenced by Scandinavians in its culture, politics and social reforms. Still, it maintains the oldest parliament in the world, founded in 930.
It is not a member of the European Union, based upon the EU's policies on fishing, one of Iceland's main industries. It has limited indigenous raw materials and relies heavily on the importation of goods.
Iceland has a unique topography and is one of the most volcanically active countries in the world. The majority of the population lives on the coast leaving 80% of the country uninhabited. Reykjavik, the capital, houses half the total population. The climate tends to be cool with mild summers and cold winters. From the end of May to the beginning of August the sun never sets.
Icelanders use geothermal springs running beneath Reykjavik for heating, and this has drastically reduced the level of fuel emissions. Pollution overall is very low.
Transportation in Iceland is fairly limited; there is no rail service and the majority of roads remain unpaved. However, bus systems are efficient and inexpensive. Taxi and car rental services are also available, primarily in Reykjavik, site of the only international airport. It is serviced by Air Iceland, Icelandair, Hello and British Airways. Iceland has a reliable communications infrastructure.
The national language is Icelandic, which has remained virtually unchanged since the Vikings.
Travel in Iceland is expensive compared to the rest of Europe; the country is considered second only to Japan in costliness for travelers. Hotels are limited and expensive. There are a few 4 Star hotels including the Radisson SAS and the Grand Hotel Reykjavik.
Although crime rates are low in Iceland, petty crime such as theft is common, particularly in Reykjavik.
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