Iceland is located in the North Atlantic Ocean. While mainland Iceland is situated just south of the arctic circle, the circle passes through Grímsey, the country's northernmost inhabitated island.
For administrative purposes, Iceland is divided into 98 municipalities. The municipalities elects a local council (sveitarstjórn ) every four years. Functions of the local authorities are mainly within the fields of social welfare and health care, education, culture and infrastructure. While regional authorities do not exist, regional committees, which operates in the 23 counties, coordinate and supervise various projects run jointly by several local authorities. Notably, the counties are not considered separate units of administration.
The constitutional ammendment of 1999 reduced the number of electoral districts for parliamentary elections from eight to six. Electoral districts do not correspond to the NUTS units.
Iceland has 1 NUTS 3 unit, 1 NUTS 2 unit and 1 NUTS 1 unit.
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