This article gives an overview of liberalism and centrism in Iceland. It is limited to liberal and centristparties with substantial support, mainly proved by having had a representation in parliament. The sign ⇒ means a reference to another party in that scheme. For inclusion in this scheme it isn't necessary so that parties labeled themselves as a liberal party.
Liberalism was a major force in Iceland since 1897, but merged into conservatism. Since 1916 an agrarian current developed, with choose a liberal centrist profile in the 1930s. So, the Progressive Party (Framsóknarflokkurinn, member LI) is an agrarian liberal centrist party. The newly found Liberal Party (Frjálslyndi Flokkurinn) seems to be an agrarian liberal party with some conservative and nationalist lines of thought.
1897: Pro-independence forces founded the Progressive Party (Framfaraflokkurinn), renamed in 1902 into Framsóknarflokkurinn, with the same meaning in English, and in 1905 Democratic Party (Þjóðræðisflokkur)
1908: The party merged with the Country Protection Party (Landvarnarflokkur) into the Independence Party (Sjálfstæðisflokkurinn)
1923: Conservative factions joined the Citizens' Party (Borgaraflokkurinn)
1916: The agrarian parties Farmers Party (Bændaflokkurinn) and Independent Farmers (Óháðir Bændur) merged into the present-day Progressive Party (Framsóknarflokkurinn), an agrarian liberal centrist party
1933: An agrarian faction seceded and formed the Farmers Party (Bændaflokkurinn)
1998: A new liberal party, the Liberal Party (Frjálslyndi Flokkurinn), seceded from the conservative Independence Party (Sjálfstæðisflokkurinn). in General elections in 1999 it gained 2 seats in parliament and 4 seats in the elections 2003. It has one representative in Reykjavík city council. The seats in the parliament were gained by campaigning against the current Fisheries management system. The seat in Reykjavík city council was gained with an environmental friendly campaign.