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Denmark
Background: The smallest and most Southern of the Scandinavian countries, Denmark offers an interesting mix of lively cities
and rural countryside. Danish Vikings once ravaged half of Europe, but these days they've filed down their horns and forged a
thoroughly modern society that combines Danish hygge (cosy and smug) and a liberal social-welfare system with a sense of
cutting-edge style, design and technology. Prominent Danes include artists such as Lars von Trier, Karen Blixen, Soren
Kierkegaard, and Hans Christian Andersen. LEGO was invented in Denmark.
Denmark consists of the peninsula of Jutland and app. 400 islands, of which app. 80 are inhabited. The largest and most densely
populated island is Zealand where the capital - Copenhagen - is situated. The second-largest city, Aarhus, is in Jutland and
friendly competition goes on between Copenhageners and Aarhusianers on which city is the most hip. Denmark has 5.4 million
inhabitants, of which 5% have foreign nationality. In addition to Denmark itself, the kingdom also includes the Faroe Islands
and Greenland.
Political Structure: Denmark is the oldest monarchy in Europe. Since the first democratic constitution was installed in 1849, the
political role of the monarch has been gradually reduced. Today, the monarch (Queen Margrethe II) remains formal head of
state but executive power is exercised solely through the cabinet ministers, with the prime minister acting as the first among
equals. Legislative power is vested in the Parliament, known as the Folketing. The 179 members all stand for election (at least)
every four years. All citizens over 18 have the right to vote. Judiciary power rests with the court.
The political system is a multi-party structure with several parties represented in the Parliament. Since 1909 no single party has
held a majority of parliamentary seats. Danish politics are thus characterised by inter-party bargaining and compromises.
Typically, Danish governments are minority administrations, governing with the aid of one or more supporting parties. The
latest national election was held on February 8th 2005. The current cabinet is composed of a two-party coalition of the Liberal
Party and the Conservative People’s Party. They rely on the nationalistic Danish Peoples Party to form a majority in Parliament.
Policy issues: The domestic policy agenda is dominated by debate on the future outlook of the welfare state, concerns over
rising levels of inequality and whether or not the economy is in risk of ‘overheating’. Though criticized internationally and by
parts of the opposition, the strict Danish immigration policy remain popular and a fixed part of the current Government’s
agenda. Foreign policy debate revolves around Denmark’s position as a long-standing member of the EU with increasingly
closer ties to the USA. Denmark contributed - from the outset – to the invasion of Iraq and remains today the only Western
European country beside the UK with troops on the ground. In early 2006, the publishing of 12 caricatures of the Prophet
Mohammed in the Danish Newspaper, Jyllandsposten, sparked the biggest foreign policy crisis for the nation since World War
II. Large scale protests erupted in several Muslim countries and included the burning of Danish flags and Embassies as well as a
major boycott of Danish produce. Both Government and business communities are still working to mend the wounds.
Economy: Denmark’s economy is highly dependent on trade with other countries. Since the mid-1990s, the economy has been
characterised by a long-lasting upturn. Compared with most other EU countries, Denmark has a very high rate of economic
activity and a high percentage of employment. This reflects i.a. that the public sector in Denmark undertakes many of the tasks
in relation to care for children, the sick and the elderly. High GDP per capita, welfare benefits, political stability and low
inequality allows the Danish people to enjoy living standards topped by no other nation. A major long-term issue will be the
decline in the ratio of workers to retirees. In its long-term growth strategy, the Government among other thing focuses on the
burden of taxation and has introduced a 'tax stop'.
Foreign Trade: Foreign trade accounts for 2/3 of the gross domestic product (GDP). Agricultural products used to dominate,
but industrial products now make up the majority of Danish exports. Biotechnology and renewable energy are small yet
strategically important industries for Denmark. The biggest trading partners are Germany, Sweden, US, UK and the
Netherlands.
Sources: Lonely Planet
Royal Danish Ministry of Foreign Affairs
Denmark.dk - the official window