Iceland in the Cold War the military protection of the United States, even if the economic benefits of the US military presence are gone. With the withdrawal of US forces, the country's military co-operation with other allied NATO countries, such as Norway, has increased. Iceland in the Cold War Throughout the Cold War, the nation of Iceland was a member of the North Atlantic Treaty Organisation (NATO) and allied with the United States, hosting a US military presence in Keflavík Air Base from 1951 to 2006. In 1986, Iceland hosted a summit in Reykjavík between United States President Ronald Reagan and Soviet Premier Mikhail Gorbachev,
Presidency of Ronald Reagan programs and priorities that had dominated the national agenda since the 1930s. Domestically, the Reagan administration enacted a major tax cut, sought to cut non-military spending, and eliminated federal regulations. The administration's economic policies, known as "Reaganomics", were inspired by supply-side economics. The combination of tax cuts and an increase in defense spending led to budget deficits, and the federal debt increased significantly during Reagan's tenure. Reagan signed the Tax Reform Act of 1986 (which simplified the tax code by reducing rates and removing several tax breaks) and the Immigration Reform and Control Act of 1986 (which enacted sweeping changes