Faroe Islands. During the year, the Faroe Islands and Denmark agreed that the Faroese self-governing government may assume responsibility for all areas of society except issues related to citizenship, the Supreme Court and foreign, defense and currency policy. The takeover is followed by financial responsibility and will take place at the rate decided by the Faroese Lagting.
The settlement set the stage for several years of political strife between the Faroe Islands and Denmark. It also meant that advocates of independence in the Faroe Islands, the Republicans, lost the battle against the political forces both right and left who want to gradually increase self-government. The latter are led by Social Democrat Joannes Eidesgaard, who is a lawman, ie. the head of the self-government.
The Danish royal family, which is very popular in the Faroe Islands, made a visit there in June. But Republican leader Høgni Hoydal harshly criticized Queen Margrethe for praising the new self-government agreement in a speech and thus, according to Hoydal, took a political stand. The queen responded to the criticism and said she did not regret that she had spoken for a relationship between Denmark and the Faroe Islands.
During the year, the Faroe Islands signed a free trade agreement with Iceland, the first international agreement entered into by the Faroe Islands without Danish participation.