Political structure

The present constitution was adopted on June 17, 1944, when the Republic was established. Iceland has a parliamentary system of government. Legislative power is vested in the parliament (Althingi) and executive power in a cabinet headed by the Prime Minister. The government must be supported by a majority of parliament in order to remain in power. The 63 members of the Althingi are elected from six constituencies on the basis of proportional representation, for a term of four years. A parliamentary bill becomes law when it is passed by the Althingi and signed by the President. The President is the head of state and is elected for a term of four years by a direct vote of the electorate.

Iceland has a tradition of political stability. Since Iceland gained autonomy from Denmark in 1918, its governments have normally been formed by a coalition of two or more political parties that have held a majority in parliament.

The results of the May 2007 elections were as follows: The Independence Party obtained 36.6% of votes and 25 seats, the Social Alliance 26.8% and 18 seats, the Leftist-Green Movement 14.3% and 9 seats, the Progressive Party 11.7% and 7 seats, and the Liberal Party 7.3% and 4 seats. Others obtained 3.3% and no seats. A coalition between the Independence Party and Social Alliance took office the same month. The next general election is to be held in 2011.

Economy of Iceland,Central Bank of Iceland