The Republic of Iceland () (; ) is a European island country located in the North Atlantic Ocean. It has a population of about 320,000 and a total area of 103,000 km². Its capital and largest city is Reykjavík, whose surrounding area is home to some two-thirds of the national population. Located on the Mid-Atlantic Ridge, Iceland is volcanically and geologically active on a large scale; this defines the landscape. The interior mainly consists of a plateau characterised by sand fields, mountains and glaciers, while many big glacial rivers flow to the sea through the lowlands. Warmed by the Gulf Stream, Iceland has a temperate climate relative to its latitude and provides a habitable environment and nature.

According to Landnámabók, the settlement of Iceland began in AD 874 when the Norwegian chieftain Ingólfur Arnarson became the first permanent Norwegian settler on the island. Others had visited the island earlier and stayed over winter. Over the next centuries, people of Nordic annd Celtic origin settled in Iceland. Until the 20th century, the Icelandic population relied largely on fisheries and agriculture, and was from 1262 to 1918 a part of the Norwegian, and later the Danish monarchies. In the 20th century, Iceland's economy and welfare system developed quickly, and in recent decades the nation has implemented free trade in the European Economic Area, diversifying from fishing to new economic fields in services, finance and various industries. Iceland is a free market economy with low taxes compared with other OECD countries. The country maintains a Nordic welfare system providing universal health care and post-secondary education for its citizens.
Icelandic culture is based on the nation’s Norse heritage and its status as a developed and technologically advanced society. The country's cultural heritage includes traditional Icelandic cuisine, the nation’s poetry, and the medieval Icelandic Sagas. In recent years, Iceland has been one of the wealthiest and most developed nations in the world. In 2007, it was ranked as the most developed country in the world by the United Nations' Human Development Index and the fourth most productive country per capita. In 2008, however, the nation’s banking system systematically failed, causing significant economic contraction and political unrest that lead to early parliamentary elections making Jóhanna Sigurðardóttir the country's Prime Minister.

Geography

thumb|200px|left|A map of Iceland with major towns marked
Iceland is located in the North Atlantic Ocean just south of the Arctic Circle, which passes through the small island of Grímsey off Iceland's northern coast, but not through mainland Iceland. Unlike neighbouring Greenland, Iceland is a part of Europe, not of North America, though geologically the island is part of both continental plates. Because of cultural, economic and linguistic similarities, Iceland is one of the Nordic countries and participates in Nordic cooperation. The closest bodies of land are Greenland (287 km) and the Faroe Islands (420 km). The closest distance to the mainland of Europe is 970 km (to Norway).
thumb|200px|right|Iceland, as seen from space on 29 January, 2004 (NASA).
Iceland is the world's 18th largest island, and Europe's second largest island following Great Britain. The main island is 101,826 km² but the entire country is in size, of which 62.7% is tundra. Lakes and glaciers cover 14.3%; only 23% is vegetated. The largest lakes are Þórisvatn (Reservoir): and Þingvallavatn: ; other important lakes include Lögurinn and Mývatn. Öskjuvatn is the deepest lake at .

However, geologically Iceland is a subaerial part of the Mid-Atlantic ridge, the ridge along which the oceanic crust spreads and forms new oceanic crust. In addition to this, this part of the mid ocean ridge is located atop a mantle plume causing Iceland to be subaerial (above sea level). Tectonically, Iceland belongs neither to the European continent nor to North America since it is a raised part of the oceanic crust, not a continental land mass.

Many fjords punctuate its 4,970 km long coastline, which is also where most settlements are situated. The island's interior, the Highlands of Iceland, are a cold and uninhabitable combination of sand and mountains. The major towns are the capital of Reykjavík, along with its outlying towns of Kópavogur, Hafnarfjörður and Garðabær, Reykjanesbær, where the international airport is located, and Akureyri, in northern Iceland. The island of Grímsey just south of the Arctic Circle contains the northernmost habitation of Iceland.
Iceland has three national parks: Vatnajökull National Park, Snæfellsjökull National Park, and Þingvellir National Park.

Geological activity

thumb|200px|right|The erupting [[Great Geysir in Haukadalur valley, the oldest known geyser in the world]]
A geologically young land, Iceland is located on both the Iceland hotspot and the Mid-Atlantic Ridge, which runs right through it. This combined location means that the island is highly geologically active and has many volcanoes, notably Hekla, Eldgjá, Herðubreið and Eldfell. Iceland is one of two places on Earth where a mid-ocean ridge rises above sea level, making it an easily accessible site to study the geology of such ridges. The volcanic eruption of Laki in 1783-1784 caused a famine that killed nearly a quarter of the island's population; the eruption caused dust clouds and haze to appear over most of Europe and parts of Asia and Africa for several months afterward.
thumb|160px|left|waterfall in Europe in terms of volume discharge, with an average water flow of 200 m³/second/" class="wiki">Dettifoss, located in northeast Iceland. It is the largest waterfall in Europe in terms of volume discharge, with an average water flow of 200 m³/second
There are also many geysers in Iceland, including Geysir, from which the English word is derived, as well as the famous Strokkur, which erupts every 5–10 minutes. After a phase of inactivity, Geysir started erupting again after a series of earthquakes in the year 2000.
With the widespread availability of geothermal power, and because many rivers and waterfalls are harnessed for hydroelectricity, most residents have inexpensive hot water and home heat. The island itself is composed primarily of basalt, a low-silica lava associated with effusive volcanism like Hawaii. Iceland, however, has various kinds of volcanoes, many of which produce more evolved lavas such as rhyolite and andesite.

Iceland controls Surtsey, one of the youngest islands in the world. Named after Surtr, it rose above the ocean in a series of volcanic eruptions between 8 November, 1963 and 5 June, 1968. Only scientists researching the growth of new life are allowed to visit the island.

Climate

right|thumb|200 px|Eyjafjallajökull glacier, one of the smallest glaciers of Iceland
The climate of Iceland's coast is subpolar oceanic. The warm North Atlantic Current ensures generally higher annual temperatures than in most places of similar latitude in the world. Regions in the world with similar climate include the Aleutian Islands, the Alaska Peninsula and Tierra del Fuego, although these regions are closer to the equator. Despite its proximity to the Arctic, the island's coasts remain ice-free through the winter. Ice incursions are rare, the last having occurred on the north coast in 1969.

There are some variations in the climate between different parts of the island. Generally speaking, the south coast is warmer, wetter and windier than the north. Low-lying inland areas in the north are the most arid. Snowfall in winter is more common in the north than the south (there is ca. 50% chance of a white Christmas in Reykjavík but ca. 70% in Akureyri). The Central Highlands are the coldest part of the country.

The highest air temperature recorded was on 22 June, 1939 at Teigarhorn on the southeastern coast. The lowest was on 22 January, 1918 at Grímsstaðir and Möðrudalur in the northeastern hinterland. The temperature records for Reykjavík are on 30 July 2008, and on 21 January 1918.
thumb|left|160px|An Icelandic horse

Flora and fauna

200px|thumb|An Icelandic sheep

Few plants and animals have migrated to the island or evolved locally since the last ice age, 10,000 years ago. There are around 1,300 known species of insects in Iceland, which is a rather low number compared with other countries (over one million species have been described worldwide). The only native land mammal when humans arrived was the Arctic Fox, which came to the island at the end of the ice age, walking over the frozen sea. There are no native reptiles or amphibians on the island.
Phytogeographically, Iceland belongs to the Arctic province of the Circumboreal Region within the Boreal Kingdom. According to the World Wide Fund for Nature, the territory of Iceland belongs to the ecoregion of Iceland boreal birch forests and alpine tundra. Approximately three-quarters of the island are barren of vegetation; plant life consists mainly of grassland which is regularly grazed by livestock. The most common tree native to Iceland is the Northern Birch Betula pubescens, which formerly formed forest over much of Iceland along with "Aspen" (Populus Tremola), "Rowan" (Sorbus Aucuparia) and "Common Juniper" (Juniperus communis) and other smaller trees. Permanent human settlement greatly disturbed the isolated ecosystem of thin, volcanic soils and limited species diversity. The forests were heavily exploited over the centuries for firewood and timber. Deforestation caused a loss of critical topsoil due to erosion, greatly reducing the ability of birches to grow back. Today, only a few small birch stands exist in isolated reserves. The planting of new forests has increased the number of trees, but does not compare to the original forests. Some of the planted forests include new foreign species.

The animals of Iceland include the Icelandic sheep, cattle, chicken, goat and the sturdy Icelandic horse. Many varieties of fish live in the ocean waters surrounding Iceland, and the fishing industry is a main contributor to Iceland's economy, accounting for more than half of the country's total exports. Wild mammals include the Arctic Fox, mink, mice, rats, rabbits and reindeer. Polar bears occasionally visit the island, travelling on icebergs from Greenland. In May 2008 two polar bears arrived only two weeks apart. Birds, especially seabirds, are a very important part of Iceland's animal life. Puffins, skuas, and kittiwakes nest on its sea cliffs. Commercial whaling is practiced intermittently along with scientific whale hunts. Whale watching has become an important part of Iceland's economy since 1997.

History

thumb|160px|right|Ingólfr Arnarson, the first permanent Norse settler in Iceland

Settlement and the establishment of the Commonwealth (874–1262)

thumb|160px|upright|right|A 19th-century depiction of a meeting of the [[Alþingi at Þingvellir]]

The first people believed to have inhabited Iceland were Irish monks or hermits, known as Papar, who came in the 8th century. No archaeological discoveries support this theory; the monks are supposed to have left with the arrival of Norsemen, who systematically settled Iceland in the period circa AD 870–930. The results of recent carbon dating work, published in the journal Skírnir, suggests that the country may have been settled as early as the second half of the 7th century. The first known permanent Norse settler was Ingólfur Arnarson, who built his homestead in Reykjavík in the year 874. Ingólfur was followed by many other emigrant settlers, largely Norsemen and their Irish slaves. By 930, most arable land had been claimed and the Althing, a legislative and judiciary parliament, was founded as the political hub of the Icelandic Commonwealth. Christianity was adopted 999–1000. The Commonwealth lasted until 1262 when the political system devised by the original settlers proved unable to cope with the increasing power of Icelandic chieftains.