The Unique Relationship Between Denmark and the European Union (EU)

Picture of Opuere Odu

Opuere Odu

Is Denmark in the EU? Out of the 50 countries in Europe, only 27 are part of the EU. Clearly, joining the EU isn’t compulsory for all nations on the European continent. Below, you’ll find out if Denmark has chosen to be in the European Union, its contributions to the organization’s welfare, and whether or not its membership has benefitted it. 

Denmark and the EU

Is Denmark in the EU? Yes.
Image source Wikimedia Commons

Denmark joined the EU on January 1, 1973, after a national referendum. Since then, it’s been involved in the development and implementation of EU policies but keeps certain exceptions to suit its interests.

The country is part of the Schengen Agreement, meaning Danes and other EU citizens can travel without border checks across most of Europe. This makes movement easier and strengthens ties with neighboring member states.

Denmark has held the presidency of the Council of the European Union several times, most recently in 2012. This gave Denmark a chance to steer discussions on EU-wide issues and push for policies that aligned with its priorities.

Danish representatives are in the European Parliament. They ensure Denmark’s interests are reflected in EU laws and policies. There’s also a Danish commissioner in the European Commission, helping shape decisions on trade, climate, and other important topics.

While Denmark works closely with the EU, it negotiated opt-outs after the Maastricht Treaty referendum. These let Denmark stay in control of certain policy areas while being fully involved in others.

Denmark’s Opt-out from Using the Euro

Denmark’s opt-out started with the Maastricht Treaty. Back in June 1992, Danish voters shocked everyone by rejecting it. The treaty was supposed to push Europe toward closer integration, including introducing a single currency. But Denmark said no, throwing a wrench into the EU’s plans.

After the rejection, the EU scrambled to fix things. In December 1992, the Edinburgh Agreement was born. This deal gave Denmark four opt-outs, including one that let them keep their own currency, the Danish krone. With these assurances in place, Denmark held another referendum in May 1993. This time, the treaty passed.

But the euro was still up in the air. In September 2000, Denmark held a referendum to decide whether to join the eurozone. The result? 53.2% of voters said no, solidifying Denmark’s decision to keep the krone. Public sentiment also played a huge role. Danes just weren’t ready to give up their currency.

To this day, Denmark operates under its opt-out from the Economic and Monetary Union, keeping the Danish krone as the official currency. 

Is Denmark in the European Economic Area?

Countries in the European Economic Area.
Image source European Environment Agency

Denmark is a member of the European Economic Area (EEA), a partnership that connects EU member states with Iceland, Liechtenstein, and Norway from the European Free Trade Association (EFTA). The EEA was created in 1994 to give these non-EU countries access to the EU’s single market without requiring full EU membership.

The purpose of the EEA is simple: it ensures the free movement of goods, services, capital, and people across its participating countries. This setup allows member states to trade and collaborate more efficiently while maintaining certain levels of national independence. Denmark, through its EU membership, is fully integrated into this system.

Switzerland, notably, is part of EFTA but not the EEA. Instead, it operates through bilateral agreements with the EU to participate in specific sectors of the single market. However, by being in the EEA, Denmark benefits from a stronger economic connection to both EU and EFTA countries.

Is Denmark’s Agreement to Join the EU’s Policy on Security Permanent?

Denmark’s opt-out from the European Union’s Common Security and Defence Policy (CSDP) was introduced in 1993 after the Maastricht Treaty. It was one of four opt-outs negotiated by Denmark to gain public approval for EU membership following an earlier rejection in a referendum. This opt-out barred Denmark from participating in EU military operations, joint defense projects, or any decisions tied to the CSDP framework.

The CSDP itself is part of the EU’s Common Foreign and Security Policy, set out in Articles 42-46 of the Treaty on European Union. It provides a structure for member states to work together on defense, crisis management, peacekeeping, and strengthening international security. Any actions under the CSDP require unanimous agreement from the Council of the European Union, ensuring all involved member states are on board.

Denmark’s opt-out status changed after the 2022 Russian invasion of Ukraine. The conflict pushed Denmark to reconsider its position, recognizing the importance of contributing fully to collective EU defense efforts. On June 1, 2022, about two-thirds of Danish voters agreed to abolish the opt-out in a referendum.

Denmark formally notified the EU of this decision, and as of July 1, 2022, the country became fully integrated into the CSDP. This means Denmark can now participate in EU military operations, defense collaborations, and security-related decision-making. The decision to end the opt-out is permanent. There’s no mechanism to reverse it.

Exchange Rate of Danish Currency 

Denmark’s currency is the Danish krone (DKK), and its exchange rate is pegged to the euro through the European Exchange Rate Mechanism II (ERM II). The central rate has been set at 7.46038 DKK per euro since January 1, 1999, with a tight fluctuation margin of ±2.25%.

Danmarks Nationalbank, Denmark’s central bank, manages this peg. If the krone moves too far from its target, the bank intervenes by trading currency or adjusting interest rates. This system, which dates back to the 1980s, keeps inflation low and ensures price stability. These are core priorities for Denmark’s monetary policy.

Denmark’s participation in ERM II gives it exchange rate stability with the eurozone but without adopting the euro itself. The opt-out lets Denmark keep its krone while staying closely tied to the euro, which is crucial for trade and investment. 

Does the EU Fund Denmark’s Affairs?

Denmark and the European Union (EU) maintain a financial relationship where Denmark contributes to the EU’s budget but also benefits from targeted funding. This funding supports Denmark’s economic goals in line with broader EU priorities.

European Commission’s Partnership Agreement

Denmark has secured €808 million under the European Commission’s Partnership Agreement for 2021 to 2027. This funding is allocated to areas like the green transition, digital innovation, and economic cohesion. Since Denmark is part of the EU’s single market, it both contributes to and benefits from these initiatives.

InvestEU Program

The InvestEU program channels resources toward Denmark’s small- and medium-sized enterprises (SMEs). Denmark’s Export and Investment Fund collaborates with the European Investment Fund, mobilizing €42.7 million for projects focused on digitalization and innovation.

Recovery and Resilience Contributions

Under the EU’s Recovery and Resilience Facility, Denmark is funding renewable energy projects, upgrading transport infrastructure to meet climate goals, and enhancing digital services. These efforts align with EU climate policies while driving innovation and sustainability within Denmark.

Denmark’s Role in the EU

As a member of the EU since 1973, Denmark has access to EU funding streams, despite maintaining opt-outs in areas like justice and home affairs. While Denmark contributes to the EU budget, the funding it receives supports domestic initiatives.

Exclusions and Opt-outs

Denmark doesn’t access all EU funds. Its opt-out from Justice and Home Affairs excludes it from the Asylum, Migration, and Integration Fund. However, Denmark participates fully in broader programs that enhance its internal market presence.

Denmark’s financial relationship with the EU is built on a structured give-and-take. Thanks to it, Denmark contributes to the bloc while receiving funding for projects that support its economic and environmental ambitions.

Is Denmark in the EU Council? 

Yes, Denmark is an active participant in the Council of the European Union (EU Council). This is where ministers from all EU member states meet to discuss, modify, and adopt laws while coordinating policies. 

The Council operates across different policy areas, like economic affairs, foreign policy, and transport infrastructure. Danish ministers attend these meetings to represent Denmark’s stance and work with other member states to influence EU legislation. Denmark has even held the presidency of the EU Council several times.

To ensure Denmark’s voice is heard, its Permanent Representation to the European Union, based in Brussels, stays actively involved. This team negotiates, monitors developments, and keeps Denmark’s interests at the forefront of EU decisions. It’s all part of Denmark’s broader participation in EU institutions and its ongoing contribution to regional cooperation.

Is Denmark in the EU? Final Thoughts 

By now, you’ve probably already come to the conclusion that Denmark is not only in the EU but plays a crucial role in the organization’s activities. On July 1, 2025, Denmark will once again hold the presidency of the EU Council. Denmark’s moves in the EU have shown that, although it likes to make use of strategic opt-outs, it’s still very interested in being a part of the Union. 

Frequently Asked Questions 

Is Denmark still a member of the EU?

Yes. Denmark has been an EU member since January 1, 1973, following a national referendum.

Is a Denmark visa easy to get?

It depends. If you’re from a country requiring a Schengen visa, you’ll need to submit documents, attend an appointment, and wait for processing. For short stays, citizens of visa-exempt countries can visit without one. Preparation makes the process smoother.

Is Denmark EU or non-EU?

Denmark is an EU country. Current EU member states include:

  • Austria
  • Belgium
  • Bulgaria
  • Croatia
  • Cyprus
  • Czech Republic
  • Denmark
  • Estonia
  • Finland
  • France
  • Germany
  • Greece
  • Hungary
  • Ireland
  • Italy
  • Latvia
  • Lithuania
  • Luxembourg
  • Malta
  • Netherlands
  • Poland
  • Portugal
  • Romania
  • Slovakia
  • Slovenia
  • Spain
  • Sweden

Can you enter Denmark with a Schengen visa?

Yes. Denmark is part of the Schengen Area. A valid Schengen visa allows you to visit Denmark and other Schengen countries for up to 90 days within a 180-day period.

Is Denmark in the EU yes or no?

Yes. Denmark is an EU member.

More Articles to Explore

author avatar
Opuere Odu

Leave a Comment

Your email address will not be published. Required fields are marked *


The reCAPTCHA verification period has expired. Please reload the page.

Dating in Denmark

84,00 kr.

Danish Open Sandwiches

79,00 kr.

Sign up for our newsletters

The best of Business news, in your inbox.

Google Ads