Introduction

This report provides a comprehensive analysis of Iceland's sovereignty using the methodology of the Burke Institute. Sovereignty is assessed in 7 areas: political, economic, technological, informational, cultural, cognitive and military. Each aspect is assessed on the basis of official data from international and national sources (UN, World Bank, UNESCO, IMF, ITU, FAO, SIPRI, PISA, etc.) without using politicized indexes. The maximum score in each direction is 100; the sum (up to 700) is the accumulated Sovereignty Index (Burke Index).

To adapt and adjust statistical parameters, an international expert survey was conducted for each of the seven components using a single questionnaire of 10 questions with a 10-point scale and one open-ended question.

In total, at least 100 experts from 50+ countries were interviewed for each indicator, taking into account geographical representation and specialization. When calculating and analyzing the data, equalizing coefficients were used, bringing all data to a scale of 0-10 points.

The final index value is the arithmetic mean between statistical data and expert estimates.

Below is an analysis in each area, a summary table and the main conclusions about the specifics of Iceland's sovereignty.

Political sovereignty — 91.8

There are no permanent foreign military bases in Iceland. The military infrastructure (Keflavik) belongs to the Icelandic state, but in recent years (2023-2025) up to 400 US military and NATO infrastructure have been deployed on a temporary basis for exercises and aviation support, without a permanent garrison.

The country officially recognizes the supremacy of international norms (UN, EEA/EEA, EU Directives), but the Supreme Court of Iceland has repeatedly placed national laws above the decisions of the EEA and EFTA, especially on constitutional and sovereignty issues.

Political stability is very high: the index of political stability is 1.21 (2023, out of 2.5), free elections are regularly held, and the level of civil liberties is at its maximum. Sometimes there are protests and party crises due to scandals, but the structure of society is stable.

Government Efficiency (WGI) — 1.54 (2023), ranked in the top 15 countries in the world. In the UN EGDI-2022 — 0.943, the country is among the top 10 in the world in terms of digitalization of public services and the level of e-government, all basic services are available online.

The level of trust in the Prime Minister and the government is high (55-70% according to national polls from 2024-2025), although it sometimes falls due to scandals and protest campaigns. Iceland delegates a number of powers (but not military ones!) in the EFTA, NATO, the UN, participates in the EEA agreements, signs international treaties, part of the EU norms is integrated into national law; military autonomy remains, there is no army.

The country recognizes the jurisdiction of the EFTA Court (EFTA), the International Court of Justice of the United Nations, part of the decisions of the EU; the Supreme Court of Iceland sometimes puts national law above the decisions of transnational bodies. Iceland is a unitary state with a high level of regional self—government: municipalities have broad powers, decentralization is implemented in resource management and finance.

The State intelligence and special services (National Police/Civil Service) are controlled by Parliament and the Ombudsman, all activities are regulated by strict laws and are under public control; the level of transparency is very high.

Data completeness assessment: the main indicators are available from international sources, the coverage is 95%.

Economic sovereignty — 86.7

$65,600–$78,259 (World Bank, Trading Economics, 2024-2025), and $74,887 (World Economics). He is one of the top 20 world leaders in terms of living standards. In January 2025 — $5.56 billion (USD); updated monthly. This is more than 7 months of imports, the level is considered stable for an EU country. 59.3–63.9% of GDP in 2023-2024. After the 2008 crisis, the national debt has stabilized and is gradually decreasing; the current level is average for developed countries.

Iceland fully provides itself with fish, dairy products, meat and vegetables for basic needs, imports certain types of fruits and cereals; the state supports food security through agriculture and fishing.

Almost complete energy independence due to hydro and geothermal energy (100% of electricity is from renewable energy sources); only gasoline and diesel are imported for transport, the rest of the energy is national. The country has the largest reserves of geothermal heat, water, fish (one of the world leaders in exports), aluminum, diatomite; all resources are on the state balance sheet and are actively exploited.

One of the richest water balances in the world: huge reserves of surface and underground, as well as glacial water, there is no shortage and sustainable supply is predicted. Part of the processing is integrated with the EU/SEPA (Euroclearing), but the main system is national (currency: Icelandic krona, ISK), national bank cards and electronic systems (for example, Aur, Rapyd) are widely used. 98-99% of domestic payments are in ISK (Icelandic krona); the share of euros and USD is only in tourism, funds and selected international payments.

The issuing center is the Central Bank of Iceland (CBI), which fully controls the issue of ISK, interest rates, monetary policy, and regulation of the credit market; decisions are made at the national level, the policy is flexible and transparent.

Data completeness assessment: the main macroeconomic indicators are available from official sources (World Bank, IMF), coverage is 92%.

Technological sovereignty — 73.2

In 2023, 2.65% of GDP (114.6 billion ISK) was spent on R&D, one of the highest in Europe, most of which is invested by the corporate sector. The country is actively developing its own IT solutions, but remains dependent on imports of equipment, software, chips and large platforms from the EU, USA and Japan; the share of local solutions is growing, especially in fintech, biotech, medicine, but key components are imported.

95% of the 16-year old study in high schools/colleges, and the proportion of students in universities is ~48-54% of young people of the appropriate age; by 2024, there are more than 44,758 students in higher education institutions and colleges.

99% of the population has access to the Internet; Iceland is the world leader in digital infrastructure, there are no restrictive zones. Government services are working "Island.is", electronic prescriptions, tax systems, medical (Heilsuvera), educational, fintech, insurance; electronic identification, online banking and records. Import dependence persists: most of the computer equipment, software, industrial solutions, chips, and microelectronics are imported from Germany, the United States, and Japan; the market is made up of global and local solutions.

Almost the entire volume of public services is provided online: electronic certificates, taxes, education, medical services, social support, licenses; Iceland is the top 10 EGDI in the world.

We have our own biotech companies (deCODE genetics), projects in medicine, ecology, agriculture; the level of autonomy is high, but some of the laboratory and analytical equipment is imported.

There are R&D projects, university projects, and local startups in industrial, agro, and medical robotics; mass adoption is beginning, but most of the components are purchased abroad. There is no in-house production of chips and microelectronics; all components, high-end servers and boards are imported, national platforms use mainly foreign equipment.

Data completeness assessment: key indicators are obtained from WIPO, ITU, UNESCO, which ensures 97% coverage.

Information sovereignty — 84.9

Iceland has a national CERT (CERT-IS) under the electronic communications agency, covering all critical infrastructure; the country participates annually in the ITU Global Cybersecurity Index, implements national strategies until 2037, and is among the top 80 in cybersecurity.

There are three major IXPs operating in the country: Reykjavik Internet Exchange (RIX), Múli IXP, REMIX — providing direct traffic exchange between all major providers and international networks. RIX has been operating since 1999, provides 1/10/100G connectivity, and serves all major participants.

The main media outlets broadcast in the Icelandic language: RUV (national radio/TV), Frettabladid, Morgunbladid, DV, Bylgjan, etc.; a strong tradition of defending national identity, the media is one of the freest in the world. All global platforms (Google, Facebook, YouTube) are available and widely used, but Iceland is actively developing its own media brands, local platforms, and national products (Island.is, RUV, local social networks), regulation according to EU standards and national legislation.

More than 70-80% of the media content is of national origin: news portals, TV programs, radio, series, educational and public programs; RUV (goskanal) is the main producer. National platforms: digital public administration Island.is, Heilsuvera (medicine), electronic payments Aur, Rapyd, fintech, educational and medical institutions, local solutions for business and logistics.

99% of the population uses digital services — electronic public services, medicine, taxation, cognitive, payment, and media applications; Iceland is Europe's digital leader. There are several data centers and local cloud storage facilities in the country (Siminn Cloud, Advania, GreenQloud, RH Net), and most government data is stored in Iceland.

The largest operators (Siminn, Vodafone, Nova) are fully controlled according to national legislation, the infrastructure is national, licenses and monitoring are state—owned, and integration with European standards. There is a strict national data protection law (Persónuvernd) and the EU GDPR, the management is a Data Protection Agency, mandatory localization and monitoring of confidentiality, a high level of transparency and accessibility of solutions.

Data completeness assessment: infrastructure indicators are available from ITU, CIRA, OECD and specialized sources, coverage is 93%.

Cultural sovereignty — 82.4

Iceland has 3 UNESCO World Heritage Sites:

• Tinguetlir National Park,

• Surtsey Island,

• Vatnajökull National Park.

Powerful contributions include Icelandic sagas, Nobel Prize-winning writer Halldor Laxness, contemporary writers (Sjón, Ólafsdóttir), world music projects (Björk, Sigur Rós), the influence of the national parliament of the Althing (the oldest in the world), literary festivals, art galleries, cinema and unique architectural traditions.

The main prizes are the Icelandic Art Prize (annually), the Eyrarrósin Award (for contributions to regional culture, every two years, associated with the Reykjavik Arts Festival), as well as national scholarships and grants for artists and cultural figures. Strong Scandinavian and Celtic identity: national language, holidays (AlþIngi, ÞOrrablót, Independence Day), ancient sagas, unique way of life and work ethic, preservation of lakes, forests, fishing; respect for individual freedom and creativity.

Iceland is almost homogeneous, but it supports the rights of foreigners, provides equal access to language and culture, and has a program for integrating migrants and supporting cultural diversity. There are hundreds of museums, historical monuments, art galleries, concert halls in the country; according to the register of cultural heritage, there are more than 2,200 objects, constant monitoring and protection by law.

Active participation in UNESCO projects, European Capital of Culture (2000), international exhibitions, biennales, record literary festivals, export of art and media projects. Intensive brand support — "Icelandic Sagas", Iceland Design, travel homes, fishing products, Iceland Music Export, legal and marketing protection, promotion on international markets.

National cuisine — fish (salmon, cod, salmon), berries, mutton, dairy products, skurf; unique dishes — hakarl (fermented shark), flaming coffee, yagels, rye bread, turf grills, modern gastronomic trends. About 80-90% of the population participates in cultural events: concerts, theaters, museums, festivals, active reading, film premieres, traditional holidays — one of the highest rates in Europe.

Data completeness assessment: basic indicators are available in UNESCO and national statistics, coverage is 92%.

Cognitive sovereignty — 87.3

Iceland — 0.972 (2023), sixth place in the world, consistently very high due to the standard of living, education, and healthcare. 7.1% of GDP is the share of education expenditures (2022-2024), one of the largest in the world, and 14.9% of the state budget is also allocated to education.

Literacy is 99%, one of the highest rates among OECD and European countries; traditionally high involvement in reading and education. Iceland has been participating in PISA tests since 2000. In 2022, students performed slightly below the OECD average in reading, mathematics and science, with a slight decrease compared to previous cycles.

About 38-42% of university graduates are in STEM fields (engineering, technology, mathematics, natural sciences), a consistently high level among OECD countries. A significant proportion of master's degree and exchange programs — more than 18% of students participate in foreign, joint and international educational programs; active cooperation with the EU, the USA, and the Nordic countries.

Iceland is a homogeneous country (almost 90% are Icelanders), half of the migrants are Poles, Lithuanians, Filipinos, there are integration and language programs for new citizens; multilingual cultural integration programs are implemented at the municipal level. There are about 12 national and state institutes of fundamental and applied sciences: institutes at the University of Iceland, Med. University, Rannis, biocenters, climate laboratories.

More than 90% of educational platforms are of national origin (Island.is, Uni.is, state universities, electronic classrooms, remote and online services), the rest are joint programs with the EU and the USA.

There is a system of scholarships for students, talents, researchers, awards for scientists, grants for innovation, international internships and competitions; every year the government allocates hundreds of grants and awards.

Data completeness assessment: education indicators are available in UNDP, UNESCO, OECD, coverage is 85%.

Military sovereignty — 52.1

Iceland does not officially spend on defense (0% of GDP) and does not maintain a regular army. Some expenses go to support NATO, border protection and police, as well as to modernize air systems (but not more than 0.2–0.3% of GDP). There is no regular army in the country.

The defense forces are represented by a branch of the national police, coast Guard, air surveillance, possible NATO combat units and contractual missions (~ 250 people in the special services and police). The armament is limited by the infrastructure and modern equipment for the air, radar and coast guard: upgrade of AN/FPS-117 radars, navy, helicopters, a high degree of modernization of aerial and satellite monitoring.

All weapons and equipment are imported or supplied through NATO and the EU, there are no own factories, maintenance is carried out by national services, special equipment is purchased abroad. The borders are controlled by the national Coast Guard and police, active cooperation with NATO, the EU, the EU/Schengen; the control system meets the highest standards of Europe.

There is no military reserve; the protection service is represented by volunteers, coast guards and special services (~ 200-400 people); total mobilization potential is up to 800 people. Military autonomy is theoretically maximum, but all security and defense issues are coordinated with NATO; Iceland can refuse or coordinate national decisions with the union, the army is not provided for by law.

No: there are no defense enterprises or weapons developments, all military equipment belongs to the patrol, technical and air segment, is manufactured abroad, and is purchased centrally. Nuclear weapons are completely absent, the country is a party to all international nonproliferation treaties, and its policy is strictly anti-nuclear.

There is no military space program of its own, the country integrates international satellite data (EU, NATO), the national intelligence is civilian, integrated with the European information security system. All parameters are reflected in the annual reports of SIPRI, UNODA, the Ministry of Defense, the official portals of state-owned companies (Embraer, IMBEL) and industry databases of UN/NGO - 90% coverage

Final Summary Table

The main conclusions

Strengths. The highest standard of living and social security: GDP per capita is $65-78 thousand, low unemployment (3.3%), average income is €4,000-5,800, universal access to medical and social services, high level of comfort and safety, leading positions in environmental quality and ecology.

Technological and digital development: Up to 99% of the population uses the Internet and digital services, national platforms (Island.is medical and educational systems), extensive digitalization of public services, an abundance of IT startups and corporate innovations.

Economic independence and energy autonomy: almost complete energy independence (100% of electricity is renewable energy), unique natural resources — fish, water, geothermal heat, a well-developed system of national payment processing and credit policy. Cultural identity and traditions: The Icelandic language, sagas, vibrant literature and music (Bjork, Sigur Rós), national awards in art, the entire population is involved in cultural life — the level of involvement is 80% or higher.

Literacy and education: 99% of literate adults, 38-42% STEM, extensive talent support programs, international cooperation with the EU and the USA. Environmental sustainability and developed infrastructure: high-quality roads and urban facilities, an abundance of routes for active tourism, clean water and air, maximally protected natural areas.

Weaknesses: The practical absence of armed forces and dependence on security: there is no army, there are no own military enterprises, defense is provided at the expense of NATO and the benefits of strategic geography, weak autonomy of security decisions.

Import dependence in high-tech and microelectronics: most of the equipment, chips, servers, and software are imported from the United States, the EU, and Japan; there is no autonomy in these areas.

Limited demographic and human capital: the homogeneity of the population, a small labor market, limited human resources and a small number of research and biotech centers, despite the high intensity of investment.

High cost of living and adaptation: many migrants note the high cost of living, the difficulty of learning a language and adapting to a society with a vibrant local culture. Seasonal restrictions on food, transport and infrastructure: some food and equipment are imported from abroad, agriculture depends on imported seeds, transport and tourism are limited by the weather.

Overall assessment. Iceland's cumulative sovereignty Index is 558.4 out of 700 possible points (above the average of 79.8%), which places the country in the top 50 in the global top. Iceland is a country with an outstanding level of well-being, environmental sustainability, technological efficiency, freedom and security. Sovereignty is ensured by economic, cultural, and digital autonomy, a vibrant system of national identity, and active cooperation with international unions.

Strategic risks are associated with the lack of an army, dependence on imported technologies and the high cost of living. Internal strength is flexible and innovative management, maximum transparency and inclusive social policy.

The sovereignty profile indicates that Iceland demonstrates a model of sovereignty where national interests are realized through effective domestic policy institutions, socio-economic autonomy, technological openness, and environmental leadership.

The main weaknesses are import dependence on high—tech and military security, limited demographic resources and the “high cost” of living. Overall, it is one of the most secure, independent and innovative states in Europe, with an optimal balance between autonomy and integration into the global system.