Denmark is a constitutional monarchy. Queen Margrethe II has largely ceremonial functions; likely her most remarkable formal power lies in her right to appoint the prime minister and cabinet ministers, who are responsible for administration of the government. she must consult with parliamentary leaders to determine the public's will, since the cabinet may be dismissed by a vote of no confidence in the Folketing (parliament). Cabinet members are occasionally recruited from outside the Folketing.

The 1953 constitution accomplished a unicameral Folketing of not more than 179 members, of whom two are elected from the Faroe Islands and two from Greenland. Elections are held at least every 4 years, but the prime minister can dissolve the Folketing at any time and call for new elections. Folketing members are elected by a complicated system of proportional representation; any party receiving at least 2% of the total national vote receives representation. The result is a multiplicity of parties, none of which holds a majority. Electorate participation normally is above more than 87%.

The judicial branch consists of about 100 local courts, two high courts, several special courts, and a Supreme Court of 15 judges appointed by the crown on the government's recommendation.

Denmark is separated into 14 counties and 275 municipalities--as of January 1, 2003, 13 counties and 271 municipalities. The chief official of the Amt, the county mayor, is elected by the county council from among its members, according to the municipal reform of 1970. The cities of Copenhagen and Frederiksberg function as both counties and municipalities.

The Faroe Islands and Greenland enjoy home rule, with the Danish Government described locally by high commissioners. These home rule governments are responsible for most domestic affairs, with foreign relations, monetary affairs, and defense falling to the Danish Government.