The Republic of Iceland is a small country north-west of Europe. Instead of just 'Iceland' it is 'The Republic' - after a long civil war against all the funding to rich and no help to the poor. It's a generally rich country, with good crops, large cities, and is a major contributer to the oil trade.
Reykjavik is the Republic's capital. On a small peninsula in the south-west region, it is covered from winds and storms by hills in the south, and is protected from the worst cold by large mountains in the north. The harbour is a small part of the peninsula that has a marina and military docks, plus 2 dry docks and a dockland. Reykjavik gets a lot of trade, but with the only entrance from the west places like Kelfavik or Grindovik get a lot more trade activity.
The parliament building overlooks the beach and sea, and it has a few embassies surrounding it.
Within days of a new poll tax, and general communism, the poorer people of Iceland had had enough. Peaceful protests led to riots, and then bombings, resulting in 70 million krónur of damage. The Sceptre, a 35-storey skyscraper and the tallest building by 11 floors, collapsed one night killing 120 people after a police shootout.
1 week and 2 days after the start, it was over. There was a death toll of 650, but it was worth it. Back to a democracy again things started to run a bit smoother. It's a democracy now, liberal democrats to be precise, and things aren't as strict.
It used to be that Iceland didn't have an army or air force - Just a navy and a 'Coast Guard' - A team of people who were like the military, but patrolled in RIBs with smaller firearms. Nowadays, there are 2,000 active servicemen, a team of 750 engineers, 600 armed forces intelligence workers, and 400 medics, doctors, IT specialists, etc. The air force consists of carriers and helicopters - no huge bombers or jet fighters. The navy, unlike the army and air force, is one of the strongest in the world, with a total of 11,000 servicemen - who all control 5 fleets of some of the most heavily armed, heavily weaponized ships the world shall see.