Helle Thorning-Schmidt, the Danish prime minister, has called a general election for June 18.
While calling the election, Ms Thorning-Schmidt outlined the progress her government has made.
"Denmark was hit harder by the crisis than many other countries because the good times had been used badly," she told journalists at a news conference held in her office.
"From day one, I have had a clear goal - to bring Denmark out of the crisis with our solidarity and order intact. This has been achieved."
The election will see her centre-left Social Democrats face stiff competition from the centre-right Liberals and the anti-immigrant Danish People's Party.
Polls show a coalition of the Social Democrats and other parties are about seven or eight percentage points behind a bloc of the Liberals and other parties.
The Eurosceptic Danish People's Party could find itself in a coalition government for the first time in its 20-year history should the main opposition Liberals win.
Ms Thorning-Schmidt is married to Stephen Kinnock, the son of former British Labour Party leader Neil Kinnock and newly elected MP for the Aberavon constituency in Wales.
She became an internet sensation in 2013 after she took a 'selfie' of herself with President Barack Obama and David Cameron at the Nelson Mandela memorial - to the apparent displeasure of Michelle Obama.