Iceland: Election of Sigurdardottir - timeline
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- April 2009. Iceland's centre-left interim government is returned to power with a strong majority in parliamentary elections. The prime minister, Johanna Sigurdardottir, vows to begin negotiations to join the European Union.
- March 2009. The chief of the IMF's mission to Iceland states that he is hopeful that Iceland will start to recover later in 2009.
- February 2009. The Social Democratic Alliance (SF) and the Left-Green Alliance (VG) form a minority interim government led by Johanna Sigurdardottir.
- January 2009. Iceland's government resigns due to the collapse of Prime Minister Geir Haarde's left-right coalition. The collapse of the coalition was precipitated by Iceland's financial crisis and the poor health of the prime minister.
- December 2008. The Icelandic government announces a plan to help private companies cope with the economic crisis. The plans include a loan scheme by the state controlled banks, government-run job creation schemes and an "economic resuscitation fund."
- November 2008. Iceland agrees to borrow US$10 billion (a sum approximately equal to its GDP) from the IMF, European countries, and Russia. Protests are held demanding the resignation of the prime minister and the governor of the central bank for their part in the crisis.
- October 2008. The Althing (the unicameral legislature) approves emergency legislation giving the Icelandic Financial Supervisory Authority (FME) power to nationalise banks and force mergers or bankruptcies. The legislation is a response to a loss of confidence in Iceland's banks by investors, depositors, and foreign banks.
- September 2008. The government of Iceland takes a 75 per cent stake in Glitnir, the country's third largest bank, for 600 million euros to prevent its collapse. News of the rescue pushes the krona to a record low against the euro.
- June 2008. The Icelandic business community demands action to halt the devaluation of the krona. The krona has lost 30 per cent against the euro since January leading to fears of a financial and economic crisis.
- May 2008. The central banks of Sweden, Denmark, and Norway unveil a 1.5 billion euro emergency funding package to stabilise Iceland's banking system and support its currency against the effects of a global credit crisis.
- April 2008. Iceland's central bank increases interest rates to 15.5 per cent in an attempt to restore confidence in Iceland's financial system. Credit rating agency Standard & Poor's downgrades Iceland's credit rating to negative.
- March 2008. In an effort to combat rising inflation and the devaluation of the krona, Iceland's central bank imposes an emergency interest rate rise of 1.25 percentage points, bringing interest rates to 15 per cent.
- August 2007. A crash in the US sub-prime mortgage market leads to global falls in equity markets and a restriction of credit to individual and corporate borrowers.
- May 2007. The ruling coalition sees its majority reduced from five to one in legislative elections dominated by economic issues. The ruling parties favoured rapid industrialisation whereas the opposition argued for cautious development until the economic and environmental consequences of development were assessed.
- August 2006. Iceland's central bank raises interest rates to a record level of 13.5 per cent. The bank warns that further rises are "unavoidable" if the outlook for inflation, currently running at 8.6 per cent, remains unchanged.
- June 2006. Geir Haarde becomes Prime Minister when the incumbent resigns after poor election results. Economists urge him to reduce government expenditure and inflation after credit rating agency Standard & Poor's downgraded Iceland's outlook to negative.
- December 2003. The Althing completes the final reading of the budget which envisages growth rising to 3.5 per cent and a budget surplus of nearly US$100 million.
- January 2003. The government sells a stake in Agricultural Bank of Iceland, Iceland's last state-owned bank, to a consortium of mostly Icelandic companies. The 45.8 per cent is sold for approximately US$150 million.
- April 2001. The government announces that the exchange rate of the krona will be allowed to float. The IMF welcomes the move and notes that it will allow Iceland to further integrate into international capital markets.
- October 1995. Prime Minister David Oddsson presents a budget that halves the budget deficit to 8 per cent of GDP. Growth is 2 per cent, held back by reductions in fish quotas.
- November 1984. Widespread strikes against austerity measures are observed in the public sector and elements of the private sector. The centre-right government's austerity initiatives reduced inflation from 15 to 8 per cent over a six-month period but led to economic contraction and complaints of falling real incomes.
- January 1976. Iceland declares a 200-mile radius exclusive fishing zone leading to renewed tensions with European countries, especially the UK. The Icelandic government justifies the move as necessary to protect fish stocks and the Icelandic fishing industry, one of the lynchpins of the economy.
- December 1968. The IMF agrees to US$3.75 million in aid for the Icelandic government to offset a fall in exports following devaluation of the krona.
- April 1961. The government devalues the krona to secure a sound economy. The devaluation was a direct result of "unrealistic" wage increases secured by trade unions according to the government.
- July 1944. Following a plebiscite and votes by the Althing and all main political parties the president of the Althing declares Iceland's independence from Denmark. A republican constitution is adopted.
- July 1941. The UK garrison of Iceland is replaced by a US garrison. The Icelandic government continues to co-operate with the occupiers, though it remains officially neutral.
- May 1940. UK troops occupy Iceland to ensure the country is not invaded by Germany, guaranteeing to leave the country after the conclusion of hostilities. The Icelandic government offers no resistance but protests at the violation of Iceland's neutrality.
- December 1918. Iceland becomes a self-governing kingdom linked to Denmark by a personal union. Denmark remains responsible for defence and foreign affairs.
- 1602. Denmark assumes a monopoly on trade with Iceland.
- 1262. Iceland recognises the Norwegian king as monarch. Local power remains in the hands of the Althing and ecclesiastical authorities.
