The Faroe Islands are located in the North Atlantic, halfway between Norway and Iceland. The archipelago consists of eighteen inhabited islands, covering an overall territory of 1399 square kilometres. Until 1948, the islands were a Danish county. Since that time, they have been a self-governing territory of the Kingdom of Denmark, as laid down in the Home Rule Act. On this basis, the Faroe Islands have their own legislative assembly (Løgting) and their own government (Landsstýri). The Home Rule Act declared Faroese, a West Nordic language derived from Old Norse and closely related to Icelandic, as the principal language. Nevertheless, both Danish and Faroese are used as official languages. While responsibility for defence issues and foreign policy is exercised jointly with Denmark, the Faroe Islands did not follow Denmark in 1972 in joining the European Community, and they are not a member of the European Union today. The economy is heavily based on the fishing industry. Around 48,500 people live on the Faroe Islands, 38% of them in the area of the capital, Tórshavn.