Although Denmark remained neutral during the First World War, 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 budgets and security policy have been set by multi-year agreements supported by a wide parliamentary majority, including government and opposition parties. Current resource plans are based on the 1999 defense agreement covering the period 2000-04. In 2002, defense is budgeted to absorb about 1.3% of GDP.

Denmark maintains an embassy at 3200 Whitehaven Street NW, Washington, DC 20008-3683 (tel. 202-234-4300). Consulates general are in Chicago and New York, while the Los Angeles office is being closed down.