Constitutional democracy with a directly elected (but powerless) head of state. Elections are held every 4 years.

Iceland has been a member of the UN, NATO and the Council of Europe since 1949, the Nordic Council since 1953 and is a member of the EFTA and thus of the EEA and the Schengen Agreement.

The Alþing declared the country a nuclear free zone in 1985 and the country is a member of the Kyoto Agreement.