otal) Liberals 2

Judicial branch: none

Political parties and leaders: Social Democratic Party, Marita
PETERSEN; Workers Front, Oli JACOBSEN; Home Rule Party, Helena Dam A
NEYSTABOE; The 'Coalition Party', Edmund JOENSEN; Republican Party,
Finnbogir ESAKSON; Centrist Party, Tordur NICLASEN; Christian People's
Party, Niels Pauli DANIELSEN; People's Party, Arnfinn KALLSBERG;
Liberal Party; Christian Democratic Party

Member of: none

Diplomatic representation in US: none (self-governing overseas
administrative division of Denmark)

US diplomatic representation: none (self-governing overseas
administrative division of Denmark)

Flag: white with a red cross outlined in blue that extends to the
edges of the flag; the vertical part of the cross is shifted to the
hoist side in the style of the DANNEBROG (Danish flag)

@Faroe Islands:Economy

Overview: The Faroese, who have long enjoyed the affluent living
standards of the Danes and other Scandinavians, now must cope with the
decline of the all-important fishing industry and one of the world's
heaviest per capita external debts of about $25,000. When the nations
of the world extended their fishing zones to 200 nautical miles in the
early 1970s, the Faroese no longer could continue their traditional
long-distance fishing and subsequently depleted their own nearby
fishing areas. The government's tight controls on fish stocks and its
austerity measures have caused a recession, and subsidy cuts will
force nationalization in the fishing industry, which has already been
plagued with bankruptcies. Copenhagen has threatened to withhold its
annual subsidy of $130 million - roughly one-third of the islands'
budget revenues - unless the Faroese make significant efforts to
balance their budget. To this extent the Faroe government is expected
to continue its tough policies, including introducing a 20%
value-added tax (VAT) in 1993, and has agreed to an IMF
economic-political stabilization plan. In addition to its annual
subsidy, the Danish government has bailed out the second largest Faroe
bank to the tune of $140 million since October 1992.

National product: GDP - purchasing power parity - $662 million (1989
est.)

National product real growth rate: -10.8% (1993 est.)

National product per capita: $14,000 (1989 est.)

Inflation rate (consumer prices): 6.8% (1993 est.)

Unemployment rate: 23% (1993)

Budget:
revenues: $407.2 mi