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National Revival
The 19th cent. brought a rebirth of national culture (see Icelandic literature) and strong agitation for independence. The great leader of this movement was JOn Sigurðsson. The Althing, abolished in 1800, was reestablished in 1843; in 1874 a constitution and limited home rule were granted; and in 1918, Iceland became a sovereign state in personal union with Denmark. The German occupation (1940) of Denmark in World War II gave the Althing an opportunity to assume the king's prerogatives and the control of foreign affairs. Great Britain sent (1940) a military force to defend the island from possible German attack, and this was replaced after 1941 by U.S. forces.
In 1944 an overwhelming majority of Icelanders voted to terminate the union with Denmark; the kingdom of Iceland was proclaimed an independent republic on June 17, 1944. Sveinn BjOrrnsson was the first president. Iceland was admitted to the United Nations in 1946; it joined in the Marshall Plan and the North Atlantic Treaty Organization. In 1946, Iceland granted the United States the right to use the American-built airport at KeflavIk for military as well as commercial planes. Under a 1951 defense pact, U.S. troops were stationed there. BjOrnsson was succeeded by Asgeir Asgeirsson.
Relations with Great Britain were strained when Iceland, in order to protect its vital fishing industry, extended (1958) the limits of its territorial waters from 4 to 12 mi (6.4–19.3 km). The conflict, which at times led to exchanges of fire between Icelandic coast guard vessels and British destroyers, was resolved in 1961 when Great Britain accepted the new limits. KristjArn EldjArn was elected president in 1968 and reelected in 1972 and 1976. Iceland joined the European Free Trade Association in 1970. In 1971 elections the Independence party–Social Democratic party coalition government, which had governed for 12 years, lost its majority, and a leftist coalition came to power.
The dispute with Britain over fishing rights (widely known as the "cod wars") was renewed in 1972 when Iceland unilaterally extended its territorial waters to 50 mi (80 km) offshore and forbade foreign fishing vessels in the new zone. An interim agreement was reached in 1973, whereby the British would limit their annual catch and restrict themselves to certain fishing areas and specified numbers and types of vessels.
In Jan., 1973, the Helgafell volcano on Heimaey island erupted, damaging the town of Vestmannaeyjar. Later in the year Iceland and the United States began revising the 1951 defense pact, with a view toward ending the U.S. military presence. U.S. forces still use the NATO base at KeflavIk Airport, and their presence continues to be a point of contention among Iceland's parties.
A split in the ruling coalition over economic policies caused the Althing to be dissolved in 1974; following elections, the Independence party formed a new government. Iceland extended its fishing limits to 200 mi (320 km) in 1975, which, after more skirmishes with Great Britain, was finally recognized in 1976. VigdIs FinnbogadOttir was elected president in 1980, thus becoming the world's first popularly elected female head of state; she was reelected in 1984, 1988, and 1992. David Oddsson, of the conservative Independence party, became prime minister in 1991; his center-right coalition was returned to office in 1995, 1999, and, narrowly, 2003. In 1996, Olafur Ragnar GrImsson was elected to succeed FinnbogadOttir, who retired as president; the highly popular GrImsson was reappointed to the post by parliament without an election in 2000.
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