Denmark Introduction

Once the seat of Viking raiders and later a major north European power, Denmark has evolved into a modern, prosperous nation that is participating in the general political and economic integration of Europe. It joined NATO in 1949 and the EEC (now the EU) in 1973. However, the country has opted out of certain elements of the European Union's Maastricht Treaty, including the European Economic and Monetary Union (EMU) and issues concerning certain justice and home affairs. The Danish population views the EU as a superb environment for economic leverage, but has not fully embraced the EU as a political solution.

Denmark has a modernized market economy with a robust corporate industry, high standards of living, a stable currency, and a strong government welfare system. Denmark has a high dependence on foreign trade, and is a net exporter of food and energy with a trade surplus. Denmark has decided not to join 12 other EU members in the euro, but the Danish Krone is pegged to the euro.

Denmark has a very heavy tax load. In 2002 taxes amounted to 49.2% of GDP (gross domestic product). The income tax to the state is progressive. Thus, the broadest shoulders carry the heaviest burdens, as the saying goes. In Denmark, there is also a high general value added tax (moms) of 25% on all goods and services. The Danish Government, consisting of The Liberal Party and The Conservative People's Party, which took office in November 2001 has decreed a tax freeze. If more money is needed in one area - for instance improvement of hospital conditions or provisions for the mentally disabled - an equivalent saving must be made elsewhere in the public budgets.

The average Danish citizen has many benefits from the strong tax system. Benefits include all education, unemployment, dental and medical care, early retirement for those needing assistance, and a national pension that is sufficient to live on. While heavily taxed, a great many needs of the citizens are covered free.

The Welfare State
In a way, it all started in the world of poetry. The clergyman, author and politician N.F.S Grundtvig (1783-1872) wrote in a song about Denmark that a country has progressed far when 'few have too much and fewer too little'. This is precisely the formula for the Danish welfare state. With the taxes as a tool, an equalisation of income is achieved so that everyone has the necessary material framework for living a reasonable life.

Denmark Overview
Location
Denmark lies between 54° and 58° of latitude north and 8° and 15° of longitude east. In addition to Denmark itself, the kingdom also includes the Faroe Islands and Greenland.

Population
Denmark has approximately 5.4 million inhabitants - this amounts to roughly 1.4 % of the total EU population. Growth Rate 0.35% (2004 est.)

Language
Danish, Faroese, Greenlandic (an Inuit dialect), German (small minority)
note: English is the predominant second language

Climate
Temperate; humid and overcast; mild, windy winters and cool summers

Natural resources
Petroleum, natural gas, fish, salt, limestone, chalk, stone, gravel and sand

Natural hazards
Flooding is a threat in some areas of the country (e.g., parts of Jutland, along the southern coast of the island of Lolland) that are protected from the sea by a system of dikes

Environmental Issues
Air pollution, principally from vehicle and power plant emissions; nitrogen and phosphorus pollution of the North Sea; drinking and surface water becoming polluted from animal wastes and pesticides

Ethnic Groups
Scandinavian, Inuit, Faroese, German, Turkish, Iranian, Somali

Religions
Evangelical Lutheran 95%, other Protestant and Roman Catholic 3%, Muslim 2%

Government Type
Constitutional monarchy
Capital – Copenhagen

Communications:

Economy
According to the World Economic Forum, Denmark is perceived as one of the top ten trading and economic countries in the world.

Currency: Danish krone (DKK)
Despite the rejection of the euro, many Danish companies are ready to trade in euros if their trade partner so wishes. Many businesses willingly accept euros as payment from tourists visiting Denmark.

GDP
Purchasing power parity - $167.2 billion (2003 est.)
Growth rate: 0% (2003 est.)
GDP per capita: purchasing power parity - $31,100 (2003 est.)

Inflation rate (consumer prices): 2.1% (2003 est.)

Labor force: 2.863 million (2003 est.)

Labor force - by occupation: agriculture 4%, industry 17%, services 79% (2002 est.)

Unemployment rate: 6.1% (2003)

Public debt: 45% of GDP (2003)

Agriculture Products: barley, wheat, potatoes, sugar beets; pork, dairy products; fish
Industries Food processing, machinery and equipment, textiles and clothing, chemical products, electronics, construction, furniture and other wood products, shipbuilding, windmills

Exports $64.16 billion f.o.b. (2003 est.)
Commodities: machinery and instruments, meat and meat products, dairy products, fish, chemicals, furniture, ships, windmills
Partners: Germany 16.1%, Sweden 12%, UK 7.4%, Norway 7%, US 6.2%, France 5.4%, Netherlands 4.1% (2003 est.)

Imports
Commodities: machinery and equipment, raw materials and semi-manufactures for industry, chemicals, grain and foodstuffs, consumer goods
Partners: Germany 24.2%, Sweden 12.4%, Netherlands 7.5%, UK 6.4%, France 6%, Norway 4.6%, Italy 4% (2003 est.)