Since 1948, the Faroe Islands have been a self-governing region of the Kingdom of Denmark. It has its own parliament and its own flag. It is not, however, a member of the European Union and all trade is governed by special treaties. Nordic languages are readily understood by most Faroese, and English is also widely spoken, especially among the younger people. The fishing industry is the most important source of income for the Faroes.
Tourism is the second largest industry, followed by woollen and other manufactured products.