Iceland: History

  1. 1380

    Norway and Iceland enter a union under the Danish crown.

  2. 1602

    Denmark assumes control over all Icelandic trade.

  3. 1904

    The country starts to experience rapid economic progress after Iceland attains home rule.  

  4. 1918

    The Treaty of Union is signed, giving Iceland full self-governance under the Danish crown with Denmark only controlling Iceland's foreign affairs.  

  5. 1940

    During World War II, British forces occupy Iceland.  

  6. 1941

    Responsibility of Iceland's occupation is passed to the United States.  The U.S. recognizes Iceland's full independence, but maintains a military presence until 2006.  

  7. 1944

    After the Treaty of Union ended in 1943, Iceland becomes a republic and cuts all ties with Denmark.  Iceland joins the North Atlantic Treaty Organization (NATO).  

  8. 1958

    The 2 decade series of Cod Wars with the UK begins, in an attempt to extend Iceland's fishing limits.  Each of the disputes ended with Iceland's victory, allowing them to extend their fishing limit from 19 to 320 kilometers.  

  9. 1970

    Iceland joins the European Free Trade Association (EFTA).  

  10. 1980s

    Iceland goes through economic difficulties with inflation rates averaging 38% annually due to the lack of policy changes to counter effect external shocks.  

  11. 2006

    The rapidly growing economy encourages immigration in Iceland, increasing the population significantly.

  12. 2007

    Iceland and Norway agree to expand defense cooperation to help secure future shipments of oil and gas.

  13. 2008

    The financial crisis takes a toll on Iceland, forcing the government to intervene and take control of all three of Iceland's major banks in an attempt to stabilize the financial system. 

  14. Late 2008

    Iceland becomes the first western nation to apply for a loan from the International Monetary Fund (IMF) since 1976 and is granted a $2.1 billion loan.

  15. 2009

    Iceland formally applies to join the European Union.

  16. 2010

    Unemployment in Iceland skyrocketed after the financial crisis from 1% to 9%. The government sets austerity programs in response, and the economy begins to show signs of improvement..

  17. 2015

    Iceland's GDP returned to the level it was at before the 2008 financial crisis.


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