Denmark is a constitutional monarchy. Since 1950, there has been a series of alternating social-democrat and conservative governments.
According to the 1953 Constitution, the sovereign formally exercises legislative and executive powers through the single house of Parliament (Folketing, composed of 175 members elected for 4 years by direct suffrage, plus 2 from the Faroe Islands and 2 from Greenland) and the Council of Ministers (which must be approved by Parliament). New elections are scheduled in June 2019.

Defence.
In addition to the army, navy and air-force, there is a National Guard for which Danes enrol voluntarily. Military service, carried out mostly by volunteers, lasts for a minimum of 4 months.

Justice.
The legal system is based on continental civil law.

Economic situation.
The country’s GDP fell by 3.3% in 2020, due to the strict containment of the pandemic. A moderate recovery is expected in 2021 (+2.8%). The low levels of public debt enable the government to intervene with a substantial stimulus package.

Primary sector
Agriculture and livestock.
Much of the arable land is used for cereal crops (barley and wheat). Other important crops include sugar beet and vegetables. Livestock farming is highly specialized and its products (milk and milk-derivatives, ham, bacon and lard) represent a significant share of Danish exports. Denmark is the world’s leading producer of mink.
Fishing.
Fishing is in constant decline, whereas fish farming (mostly trout) is highly developed.

Secondary sector
Minerals.
The country’s main resources are oil and natural gas from the North Sea, exported via pipelines to the Netherlands. Denmark granted on 30 October 2019 permission for the passage of Nord Stream 2 pipeline (from Russia to Germany) through its territorial waters, while Italian Saipem will build a gas pipeline to Poland.
Energy and industry.
Denmark generates enough electrical energy to be self-sufficient; in 2020, wind power covered 50% of the national energy requirement. The construction electrical connections with the Netherlands and the United Kingdom is underway (Viking Link). Investments in wind power are on the increase and wind turbines are also manufactured for export.
The fertilizer industry is highly developed, mainly used in agriculture; cement production is widespread. There are large shipyards at Copenhagen, Helsingør, Nakskov, Odense, Svendborg, Aalborg and Frederikshavn. Refineries are located in Kalundborg and Fredericia. Finally Denmark produces farm and industrial machinery.
The foodstuffs segment includes sugar refineries and some famous breweries, including Carlsberg and Tuborg, both concentrated at Copenhagen. The tobacco industry is based on imported raw materials. Denmark’s famous ceramics from the workshops at Rønne are made with kaolin from the island of Bornholm.

Tertiary sector
Foreign trade.
Denmark has a positive balance of trade. Its main trading partners are Germany and Sweden.

Main exports (M US$ - 2017) machinery 14 125, pharmaceuticals 12 943, electrical and electronic equipment 8 767, apparel and accessories 4 285, fresh and preserved meat 4 201, optical and electro-medical appliances 4 075, iron and steel 4 000, crude oil and petroleum products 3 606, fresh and preserved fish 3 443, chemicals 3 235, furniture and accessories 2 927, vehicles and parts thereof 2 859, cheese and dairy products 2 682, plastics and articles thereof 2 528, food preparations 2 472, live animals 1 482, enzymes 1 241, furs 1 133, residues and wastes of food industry 1 057

Finance and banking
. The Danmarks Nationalbank acts as the country’s central bank. The Copenhagen stock exchange is part of the multinational corporation Nasdaq, Inc. New controls on the banking system were introduced after the scandal that hit Danske Bank, one of the most relevant groups.

Tourism. Tourism, especially the capital Copenhagen, attracts many visitors from Germany and Scandinavia.

Education, culture & research.
Education is compulsory between the age of 7 and 16, with one year of pre-school activities and an optional tenth year at the end. Afterwards students can choose to attend professional training courses or one of the four different types of secondary school, which lead to university entrance qualifications.

Social security and health.
The Danish welfare system is on the cutting edge of social wellbeing and covers illness, accidents at work, unemployment, invalidity and allowances for dependents; retirement pensions are guaranteed for all (generally at 65 years of age), medical care is free and there is a comprehensive social welfare system.