Denmark on Sunday took over the six-month rotating Presidency of the European Union from Poland at a time when the 27-member European bloc is facing a severe financial and debt crisis.
Denmark is not a member of the 17-member eurozone which uses the common currency euro and hence analysts opine its capability to deal with the euro crisis is curtailed.
It will be the seventh time Denmark holds the EU Presidency since joining the Union in 1973.
After the Lisbon Treaty came into force in 2009 the institutional landscape in the EU has changed.
The Treaty has established the posts of the permanent President of the European Council and the High Representative of the European Union for Foreign Affairs and Security Policy who deal with the foreIgn policy.
The rotating EU Presidencies are in charge of other policy areas like economics, agriculture, environment but not foreign policy.
Denmark is now a part of the so-called trio presidency where three EU presidencies work together to enhance coordination.
Denmark joins a trio with Poland, which held the Presidency before Denmark and Cyprus which will hold the Presidency after Denmark from July first.
The Lisbon Treaty has also given the European Parliament more powers as co-legislator on nearly all new legislation. This means that cooperation with the European Parliament will be an important task during the Danish Presidency.