Iceland. Fishing, which accounts for about three quarters
of the country's exports, had major problems at the
beginning of the year. On the one hand, the season's herring
fishing gave only half of the allowable catch quota, and on
the other, a conflict over fishing prices and wages led to
about 5,000 fishermen going on strike for three weeks in
February and March. The conflict was resolved through
coercive legislation which, among other things, gave 13% pay
raise. The country's nurses also went on strike during the
year and the result was up to 20% salary increase.
In the local elections in May, the left-dominated
coalition retained power in Reykjavík, while the influence
of conservatives continued to exist in the country.
Countryaah, unemployment continued to decline for the second year in
a row and was registered at 2.5% in July, close to halving
compared to two years earlier.
In November, Iceland, Greenland and Norway signed an agreement
on the boundaries of the sea area between Iceland, Greenland and
Jan Mayen. At the same time, disagreement over the Norwegian
fishing limit of 250 nautical miles continued around
Following lengthy negotiations in Brussels, it became
clear in November that Iceland will receive full participation
with ministerial influence in the EU's Schengen border
control agreement. However, the settlement must be approved
by the Swedish Parliament and by all EU countries.
In February, the author and Nobel laureate in literature
passed away Halldór Laxness, the country's perhaps most
well-known resident. He turned 95 years old.