Dania is a representative monarchy with a strong democratic background and it is highly dependant on sea trade and tourism. Dania´s armed forces are modern but small in size. They are members of both UN and one of the PfP nations applying for NATO membership.

When Islandia was still part of the Danian kingdom, several Danian communities were established in Islandia, mainly in Odd Shire. Most of these remaining communities did not seek to become integrated into the Islandian society, and abhors from the Islandian political regime and some factions openly advocate a union between the enclave of Odd Shire and Dania. This has caused a lot of controversy in Islandia and lately an extremist group called Islandian Rebels has begun operating against the Danian minority in Odd Shire. Danias armed forces consist of a small army, insignificant navy but two fighter wings consisting of PA200 and F-16.