A Nordic country which, despite its small population and its
inhospitable climate, has succeeded in achieving a remarkably
high standard of living. Danish rule (up to 1944) Under Danish
sovereignty since 1380, Europe's second largest island acquired
limited autonomy from Denmark in 1874, when its Assembly, the
Althing, gained legislative powers. Moves to achieve
independence were finally successful in 1918, when Iceland
gained full sovereignty, though its head of state continued to
be linked to the Danish crown. Owing to its important strategic
location, during World War II Iceland was occupied by British
and US troops in 1940 and 1941 respectively. Taking advantage of
the German occupation of Denmark at the time, Iceland severed
its ties with the Danish King in 1944, when it was declared a
Republic, with Sven Björnsson becoming the first President
(1944–52). Contemporary history (1944–2000) After World War II,
it became an important base for NATO, which it joined in 1949.
Traditionally, its economy depended