After the breaking of the Kalmar Union northern Europe separated into two major powers, Sweden (then including Finland) and Denmark-Norway.

Denmark-Norway was created via a personal union in 1536 which put the two countries under the rule of one king despite having separate governments, legal codes, and currencies. Political and economic power came mainly from Copenhagen, making Denmark the more dominant member of the union.

The Kingdom of Denmark-Norway also included the then-Norwegian islands of Greenland, Iceland, the Faroes and Svalbard, as well as various Danish colonies in India, the Caribbean and Africa.