During the 1990s, while the economy improved and unemployment dropped, Danes struggled with three key political and economic issues. First, political controversy surrounded the status of immigrants and refugees in Denmark. A violation of refugees’ rights led the prime minister to resign in 1993; right-wing parties adopted anti-immigration platforms; and rioting followed the expulsion in 1999 from Denmark of a Danish-born man of Turkish descent. Second, while most Danes supported maintaining the country’s strong social welfare programs, some Danes sought to decrease the programs’ high cost in taxes while others opposed any cuts in benefits. Third, Danes also were divided during the 1990s over closer economic ties with the European Community (EC). In 1992 Danish voters rejected the Maastricht Treaty, which provided the framework for an expanded European Union (EU) that would subsume the EC. A second referendum in 1993 approved Danish membership in the EU, but only after Denmark had negotiated exemptions from certain provisions of the treaty that many Danes thought might erode Danish social benefits or environmental protections. In a 2000 referendum, Danish voters rejected the single European currency, the euro.

These issues remained political touchstones in the early 21st century. A center-right coalition of the Liberal and Conservative parties assumed power following the defeat of the Social Democrats in the 2001 elections, which also marked the ascendancy of the far-right Danish People’s Party (Dansk Folkeparti), a nationalist organization focused on immigration control. The new government immediately instituted policies further restricting immigration, including rules preventing would-be immigrants younger than age 24 from being naturalized as a result of marriage to, or sponsorship by, a Danish citizen. Despite its domestic popularity, this immigration crackdown was criticized by international observers, who noted that immigrants (primarily about 170,000 Muslims) constituted less than 5 percent of Denmark’s population. Also indicative of Denmark’s new conservatism, social welfare programs were slashed as expenditures overall were curtailed, though political debates on improving social welfare continued. The Liberal-Conservative coalition, under Prime Minister Anders Fogh Rasmussen, was reelected in 2005 and 2007. When Rasmussen was appointed secretary-general of NATO in 2009, he was replaced as prime minister by the foreign minister, Lars Løkke Rasmussen.

In the 2011 parliamentary elections, some 10 years of center-right rule came to an end when a center-left coalition led by the Social Democrats took power, with that party’s leader, Helle Thorning-Schmidt, becoming the country’s first female prime minister. Denmark’s economy had weathered the world economic downturn of the previous few years fairly well, but, as the country’s economic fortunes began a precipitous decline, voters looked for a solution from Thorning-Schmidt, who had campaigned on a platform of increased public spending, higher taxes, and a reversal of the draconian regulations for immigrants implemented under the previous regime. In office she struggled occasionally as she steered her sometimes volatile Social Democrat–Social Liberal–Socialist People’s Party coalition through a tough program of tax and unemployment-benefit reforms, public-spending cuts, and measures aimed at balancing the state budget by 2020. Her efforts were complicated by a series of scandals that included security problems concerning a key cabinet appointee, allegations of sexual misconduct by leading politicians, and questions regarding whether Thorning-Schmidt’s husband (the son of former British Labour Party leader Neil Kinnock) had paid taxes in Denmark.

Denmark had become the locus of both a domestic and an international controversy following the 2005 publication in a Danish newspaper of cartoon caricatures of the Prophet Muhammad. The images provoked violent protests by Muslims worldwide and death threats against the cartoonists; the controversy also resulted in the recall of several Islamic ambassadors to Denmark and a sharp drop in Danish exports to Islamic countries. Although the newspaper eventually apologized for printing the cartoons, Prime Minister Rasmussen defended the freedom of the press throughout the crisis. By 2010 more than 100 people had died in incidents related to the cartoons, including attacks on Danish embassies and riots in Pakistan, the Middle East, and Africa.

In other foreign affairs, the country struggled to define its role as a limited member of the EU. Government policy reflected most Danes’ continued opposition to the single currency, joint defense, and EU citizenship, yet Denmark showed more enthusiasm than many of its European neighbors in its support of the Iraq War in 2003, though that stance was losing its popular appeal by mid-decade. The country withdrew most of its troops from Iraq in 2007. Moreover, in 2012 Thorning-Schmidt’s government pledged to initiate an investigation of Danish involvement in Iraq. Her government also pledged to withdraw Denmark’s 750 troops from NATO’s International Security Assistance Force in Afghanistan by the end of 2014 (the deaths of Danish soldiers in the conflict were the highest per capita totals among coalition forces). Denmark’s role in the EU once again came into question in May 2014 when the Euroskeptic Danish People’s Party triumphed in elections to the European Parliament, capturing nearly 27 percent of the vote and four seats, compared with about 19 percent and three seats for the governing Social Democrats.

In mid-February 2015 Copenhagen was shaken by a pair of terrorist attacks that occurred within hours of each other. A filmmaker was killed and three policemen were wounded when a gunman shot through the windows of a café–cultural center, which was hosting a panel discussion titled “Art, Blasphemy and Freedom of Expression” that included the participation of a Swedish artist whose published depiction of the Prophet Muhammad in 2007 had stirred controversy and had made him the target of previous attacks. Hours later, outside a synagogue, a member of the congregation who was providing security was fatally shot, and two policemen were wounded in another attack. The incidents echoed events in Paris in January—in which 12 people were killed in an attack on a satirical magazine that had published a depiction of Muhammad and five others perished in the seemingly related hostage incident at a kosher grocery store.

The governing coalition was defeated in June elections for the Danish parliament that appeared to reflect growing anti-immigrant sentiment. Despite the fact that Thorning-Schmidt’s Social Democrats took a larger percentage of the vote than any other single party (about 26 precent), the five-party “Red” coalition that she led into the election finished with only 85 seats, whereas former prime minister Lars Lokke Rasmussen of the Liberal Party effectively headed a center-right “Blue” slate that captured 90 seats in the 179-seat parliament. The Liberals themselves finished third in the voting with about 19.5 percent, behind the Danish People’s Party, which tallied some 21 percent of the vote, after campaigning for stricter limitations on asylum seekers. As Rasmussen prepared to form a governing coalition, it was not clear whether the Danish People’s Party would join the government or just support its policies in parliamentary votes. The party’s leader, Kristian Thulesen Dahl, suggested that it might be able to better advance its principles through its influence rather than by participating in the government. Ultimately, Dahl decided to remain outside the government, and, after talks with other potential coalition partners broke down, Rasmussen formed a weak minority government (with only 34 seats) that was forced to call on other parties for support to pass any legislation.

Although Denmark did not receive as many migrants and refugees fleeing turmoil in Africa and the Middle East as some of its northern European neighbors did, the migrant crisis of 2015–16 still had a significant impact on Denmark. In January 2016 Sweden tightened its borders by imposing identity checks on everyone entering that country from Denmark (the first time such checks had been executed in some five decades). In response, the Danish government—fearing that the Swedish action would result in increased numbers of migrants remaining in Denmark and intent on deterring further immigration—temporarily suspended the free movement across its border with Germany, stemming the influx of migrants who made their way by boat to Greece and then up through the Balkan states to northern Europe. At the end of January the Danish government became the target of domestic and international criticism after it enacted legislation that allowed officials to confiscate cash and valuables (in excess of about $1,450 in value) from migrants to help repay the Danish welfare state for their living expenses. Although the legislation did not allow the seizure of items of “special sentimental value,” critics still drew parallels between the measures and the government confiscation of property from Jews and other persecuted minorities in Nazi Germany.

Immigration policy remained a core issue when Rasmussen called for parliamentary elections to be held in June 2019. The Danish welfare state and climate change were also key issues during the subsequent campaign, and Mette Frederiksen, the leader of the Social Democratic Party, pledged to increase public spending and make significant reductions in greenhouse gas emissions. More dramatically, she reversed her party’s stance on immigration, rivaling the restrictive policies of the Rasmussen government with promises for a hard-line approach that appealed to anti-immigration supporters of the Danish People’s Party. In the run-up to the elections, Rasmussen raised the possibility of rule by a grand coalition that would include the Social Democrats, but Frederiksen did not bite, and her party finished first at the polls, capturing 26.2 percent of the vote and 48 seats, compared with 41 seats for the Liberals. The Socialist People’s Party, Social-Liberal Party, and Red-Green Alliance joined the Social Democrats in forming a ruling coalition, at the head of which Frederiksen became the youngest prime minister in Danish history at age 41.

In August she found herself at the center of international news when she drew the ire of U.S. Pres. Donald Trump by summarily dismissing his suggestion that the United States buy Greenland from Denmark. She said that a discussion of the matter would be an “absurd discussion.” Although there was some question about whether Trump had been serious about the idea, he abruptly cancelled a scheduled state visit to Denmark in the wake of Frederiksen’s comments.

A rapid response by Denmark’s government and the Danish people’s traditional trust in government contributed to the country faring better than many of its neighbors during the initial stages of the COVID-19 global pandemic, but, as in most of the world, life in Denmark was profoundly disrupted by the pandemic in 2020–21. The Danish economy took a hit too, and inflation climbed in 2021–23. A snap parliamentary election in early November 2022 was sparked by outrage in some quarters in response to the government’s controversial decision to cull the whole of the country’s captive mink population in an attempt to protect the human population against the spread of potential COVID-19 mutations. The other pivotal issues in the election were inflation, climate change, and concerns about the health care system. Because parties on the left generally had come to embrace stringent immigration polices, anti-immigration posturing became a less-reliable rallying point for parties on the right.

The results of the election seemed to indicate that voters approved of Frederiksen’s handling of the public health crisis, as they handed her Social Democrats more than 27 percent of the vote, good for 50 seats in the Folketing, making them the body’s dominant presence. Moreover, left-leaning parties were poised to fairly easily form a ruling coalition. However, Frederiksen chose to go against the country’s tradition of forming governments of strictly the right or the left and instead welcomed the Moderates (the new party founded by Rasmussen) and the Liberals into a coalition government headed by the Social Democrats.

Having been slowed by major back surgery in 2023, Denmark’s popular monarch, Queen Margrethe II, announced in late December of that year that she would be abdicating in favor of her eldest son, Crown Prince Frederik, thus ending the longest reign among current European monarchs. He became King Frederik X on January 14, 2024, on the 52nd anniversary of Margrethe’s ascent to the throne.