Although Denmark remained neutral during World War I, its rapid occupation by Nazi Germany in 1940 persuaded most Danes that neutrality was no longer a reliable guarantee of Danish security. Danish security policy is founded on its membership in NATO.

Since 1988, Danish defense budgets and security policy have been set by multi-year agreements supported by a wide parliamentary majority including government and opposition parties. However, public opposition to increases in defense spending – during a period when economic constraints require reduced spending for social welfare – has created differences among the political parties regarding a broadly acceptable level of new defense expenditure.

Current resource plans are based on the 1995 defense agreement covering the period 1995-1999. The average percentage of Danish GDP absorbed by defense in 1996 was about 1.5%.

Military branches: Royal Danish Army, Royal Danish Navy, Royal Danish Air Force, Danish Home Guard (Danish: Hjemmeværnet)

Military manpower - military age: 18 years of age

Military manpower - availability:
males age 15-49: 1,299,250 (2000 est.)

Military manpower - fit for military service:
males age 15-49: 1,113,378 (2000 est.)

Military manpower - reaching military age annually:
males: 30,471 (2000 est.)

Military expenditures - dollar figure: $2.822 billion (FY98)

Military expenditures - percent of GDP: 1.7% (FY98)