Icelandic Coast Guard, in exchange for the continued stationing of the four F-15C interceptors in Keflavík. On March 15, 2006 the U.S. government announced that the Iceland Defense Force would be withdrawn by the end of September 2006. The last American troops left on September 30, handing control of the Keflavík base over to the Sheriff of Keflavík airport, who was to be in charge of it on behalf of the Ministry for Foreign Affairs. American withdrawal On September 26, 2006 the Government of Iceland released a document containing Iceland's response to the withdrawal of American forces. It included plans (a) to create a Security and Defense authority to oversee all security organisations in Iceland, including Police and Coast Guard; (b) to increase the capabilities of the Coast Guard by purchasing vessels and aircraft; (c) to create a Security or Secret service; and (d) to establish a secure communications system spanning the whole country. MP Magnús Þór Hafsteinsson of the Liberal party voiced his party's willingness to raise a standing army, in agreement with views expressed by Björn Bjarnason Minister of Justice and Ecclesiastical affairs. The Icelandic Defence Agency (Varnarmálastofnun Íslands) was founded in 2008 under the Minister for Foreign Affairs. The Agency was to consolidate functions previously served by NATO forces at Naval Air Station Keflavik, such as maintaining defense installations, intelligence gathering and military exercises. An initial budget of $20 million fell to $13 million in 2009 as the Icelandic economy suffered a crisis. On 30 March 2010, the Icelandic government announced it would legislate to disband the Agency and put its services under the command of the Coast Guard or National Police. To save money and to restore the primary role of the Icelandic Coast Guard in defense, the Defence Agency was shut down on January 1, 2011. Iceland Air Meet 2014 hosted NATO and other Nordic countries for the first time. See also Battle of Haugsnes Battle of Sauðafell Battle of Víðines Battle of the Gulf Battle of Örlygsstaðir Borgarvirki Defence of Iceland History of Iceland List of countries without armed forces List of wars involving Iceland References Further reading Þór Whitehead, The Ally who came in from the cold: a survey of Icelandic Foreign Policy 1946–1956, Centre for International Studies. University of Iceland Press. Reykjavík. 1998. External links Icelandic Coast Guard. Icelandic National Police. Iceland Air Defence System. Ministry of Justice and Ecclesiastical Affairs. Ministry