United Kingdom

(Icelandic Embassy, London, July 2003)

General information:
Full name: United Kingdom of Great Britain and Northern Ireland. An area of some 242.500 sq km. Capital: London, has a population of around 8 million (2001). Total population: 60,1 million (2002). Currency: £, 1 Pound Sterling = 127 ISK Icelandic krona (Sept 2003). Language: English

The Government:
Britain is a parliamentary democracy. The Head of State, Queen Elizabeth II (b. 21 April 1926), is a hereditary monarch; succeeded to The Throne 6 Feb.1952. The Queen´s title in Britain is: "Elizabeth the Second, by the Grace of God of the United Kingdom of Great Britain and Northern Ireland and of Her other Realms and Territories Queen, Head of the Commonwealth, Defender of the Faith" Parliament: The present Government of the Labour Party, came into power after the general elections on 1st May 2001. The general elections must be held at least every 5 years. The House of Commons consists of 659 Members of Parliament - MPs, who represent a local constituency or seat - country district, town or part of a city. In the last election, the Labour Party won 412 seats (majority of 179), the Conservative Party 166, the Liberal Democrats 52, the Ulster Unionist Party 6, the Scottish National Party 5, Plaid Cymru 4 and other Parties 14. 120 women MPs where elected, of which 101 were Labour. The House of Lords, with its limited powers to revise proposed laws, is not elected. Currently, there are about 700 members of the House of Lords. It consists of hereditary peers, senior bishops of the Church of England, and others nominated mainly by the major political parties. Prime Minister, First Lord of the Treasury and Minister for the Civil Service: Mr Tony Blair (Labour Party). Foreign and Commonwealth Secretary: Mr. Jack Straw (Labour Party).

The Economy:
GDP in billion pounds: 1,116.5 (2002). GDP growth: 2.7 % (2002). Unemployment rate: 4.8 % (July 2003). Inflation rate: 1.2 % (2002).

Ministerial visits: Mr. Denis MacShane, British Minister for Europe, visited Iceland in July 2004 and met with Mr. Halldór Ásgrímsson, Minister for Foreign Affairs and Mrs. Valgerður Sverrisdóttir, Minister of Industry and Commerce.
Mr. Jack Straw, Britain´s Foreign Secretary attended NATO´s ministerial meeting held in Reykjavík in 2002.

Foreign Relations:
Iceland and the United Kingdom have extensive bilateral and multilateral relations, especially through the European Economic Area (EEA) and the North Atlantic Treaty Organization (NATO). Both are members of the Western European and Others Group (WEOG) at the United Nations.

The principal International Organisations in the UK of which Iceland is a member: International Maritime Organisation (IMO), European Bank for Reconstruction and Development (EBRD), North Atlantic Salmon Conservation Organisation (NASCO), International Mobile Satellite Organisation, and International Oil Pollution Compensation Fund.

Diplomatic Relations:
British consuls have been accredited in Iceland since the early 19th century. Both countries opened embassies in 1940. Iceland has appointed honorary consuls in the United Kingdom since 1942.

Although fish and fish products are still the mainstay of Iceland´s trade with Britain (80%), other industries like aluminum and computer software are playing an increasing part. Tourism is one of Iceland´s fastest growing industries, with over 10% coming from the U.K. alone.


Exports to the United Kingdom in 2002 (millions of kronur)

Around 42,100 British tourists came to Iceland in 2002, making British tourists the largest group of visitors from one single country.

• Icelandic Tourist Board
• Icelandic Society in London
• Egill Skallagrimsson Fund

On 30 September 1991, Iceland and the United Kingdom concluded a double taxation agreement, effective 19 December 1991. Twenty others bilateral treaties have been concluded in the period 1660-1991.

Further Information: