Iceland: History

Norway and Iceland enter a union under the Danish crown.

Denmark assumes control over all Icelandic trade.

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

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

During World War II, British forces occupy Iceland.  

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.  

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).  

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.  

Iceland joins the European Free Trade Association (EFTA).  

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

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

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

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. 

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.

Iceland formally applies to join the European Union.

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..

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

A coalition government is formed between the Independence, Centre-Right Restoration, and Centrist Bright Future Parties.