Claim: Denmark introduced social and labor-market reforms in the early 20th century that created the basis for the welfare state.

For other uses , see Denmark -LRB- disambiguation -RRB- .   Denmark -LRB- -LSB- ˈdɛnmɑrk -RSB- Danmark -LSB- ˈd̥ænmɑɡ̊ -RSB- -RRB- , officially the Kingdom of Denmark , Kongeriget Danmark , -LSB- ˈkɔŋəʁiːəð ˈd̥ænmɑɡ̊ -RSB- . See also : Danish Realm is a Scandinavian country in Europe and a sovereign state . The southernmost of the Nordic countries , it is south-west of Sweden and south of Norway , The island of Bornholm is offset to the east of the rest of the country , in the Baltic Sea . and bordered to the south by Germany . The Kingdom of Denmark also comprises two autonomous constituent countries in the North Atlantic Ocean : the Faroe Islands and Greenland . Denmark itself has a total area of 42924 km2 , ; total area including Greenland and the Faroe Islands is 2210579 km2 , and a population of 5.75 million . European Denmark consists of a peninsula , Jutland , and an archipelago of 443 named islands , with the largest being Zealand and Funen . The islands are characterised by flat , arable land and sandy coasts , low elevation and a temperate climate .   The unified kingdom of Denmark emerged in the 10th century as a proficient seafaring nation in the struggle for control of the Baltic Sea . Denmark , Sweden and Norway were ruled together under the Kalmar Union , established in 1397 and ending with Swedish secession in 1523 . Denmark and Norway remained under the same monarch until outside forces dissolved the union in 1814 . The union with Norway made it possible for Denmark to inherit the Faroe Islands , Iceland , and Greenland . Beginning in the 17th century , there were several cessions of territory to Sweden . In the 19th century there was a surge of nationalist movements , which were defeated in the 1864 Second Schleswig War . Denmark remained neutral during World War I . In April 1940 , a German invasion saw brief military skirmishes while the Danish resistance movement was active from 1943 until the German surrender in May 1945 . An industrialised exporter of agricultural produce in the second half of the 19th century , Denmark introduced social and labour-market reforms in the early 20th century that created the basis for the present welfare state model with a highly developed mixed economy .   The Constitution of Denmark was signed on 5 June 1849 , ending the absolute monarchy which had begun in 1660 . It establishes a constitutional monarchy organised as a parliamentary democracy . The government and national parliament are seated in Copenhagen , the nation 's capital , largest city and main commercial centre . Denmark exercises hegemonic influence in the Danish Realm , devolving powers to handle internal affairs . Home rule was established in the Faroe Islands  in 1948 ; in Greenland home rule was established in 1979 and further autonomy in 2009 . Denmark became a member of the European Economic Community -LRB- now the EU -RRB- in 1973 , maintaining certain opt-outs ; it retains its own currency , the krone . It is among the founding members of NATO , the Nordic Council , the OECD , OSCE , and the United Nations ; it is also part of the Schengen Area .   Danes enjoy a high standard of living and the country ranks highly in some metrics of national performance , including education , health care , protection of civil liberties , democratic governance , prosperity and human development . The country ranks as having the world 's highest social mobility , a high level of income equality , is the country with the lowest perceived level of corruption in the world , has one of the world 's highest per capita incomes , and one of the world 's highest personal income tax rates .