Iceland is a republic with a directly elected president, who is formally responsible for appointing the prime minister. The parliament, Althing, is Iceland's highest authority.
In Iceland the President is the elected head of state. Right now Mr. Ólafur Ragnar Grímsson is the President and it is his fifth term as president, first elected in 1996, and most recently re-elected in 2012. The president is elected to a four-year term.
The constitution does not limit the number of terms the president is allowed to serve. There have been five presidents since Iceland became independent from Denmark in 1944.
Iceland is not a member of the EU, but takes part in European economic co-operation through the EEA Agreement. Iceland is a member of NATO.