Possible Clues:

• Most sparsely populated European country
• Reykjavik is its capital
• Reykjavik�s country
• It must be a hard life, and not so hot, there
• Home of the Great Geysir
• Former part of Norway
• Country with many hot springs
• One flowering plant not in eastern country
• Eyjafjallajökull's location
• The capital city is Reykjavik