Iceland is an European island country in the north Atlantic Ocean. It has a population of about 320,000 and a total area of 103,000 km2. The capital and the largest city is Reykjavik, with the surrounding areas in the southwestern region of the country being home to two-thirds of the national population. Iceland is volcanically and geologically active. The interior mainly consists of a plateau characterised by sand fields, mountains and glaciers, while many glacial rivers flow to the sea through the lowlands. Iceland is warmed by the Gulf Stream and has a temperate climate despite a high latitude just outside the Arctic Circle.
According to Landnámabók, the settlement of Iceland began in 874 when the first permanent Norwegian settled on the island. From 1262 to 1918 Iceland was part of the Norwegian and later the Danish monarchies. Until the 20th century, the Icelandic population relied largely on fisheries and agriculture. In 1994, the nation became party to an agreement that established the European Economic Area, thus allowing it to diversify from fishing to economic and financial services.
Iceland has a free market economy with relatively low taxes compared to other OECD countries, while maintaining a Nordic welfare system providing universal health care and tertiary education for its citizens.
Icelandic culture is founded upon the nation's Norse heritage. Icelandic langage, since the island have been quite isolated, has barely changed since the IXst century. The country's cultural heritage includes traditional Icelandic cuisine, poetry, and the medieval Icelanders' sagas. Currently, Iceland has the smallest population among NATO members and is the only one with no standing army. According to Freedom of the Press, Iceland has one of the freest presses in the world.
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