The Kalmar Union fell apart, and the two new states, Denmark–Norway and Sweden, did their best to crush each other in constant wars to become the dominant power in the region. However, in the long term, both had to accept their role as small European states.
In the early modern era, the Nordic Region consisted of two states: Denmark–Norway and Sweden.
Norway remained united with Denmark, but came to play a subordinate role. The old Norwegian territories of Iceland and the Faroe Islands also fell under the Danish crown.
In addition, the united duchies of Schleswig-Holstein, on the border between Denmark and the Holy Roman Empire, came under Danish rule.
On the other hand, contact with Greenland was lost, and the Nordic settlement there died out.
Finland remained part of the Swedish kingdom.
The divisions in the Nordic Region at that time were largely economic and social rather than political.
Denmark and Schleswig-Holstein's society increasingly came to resemble the northern and eastern areas of Europe – i.e. powerful landowners and subordinate peasants, and an agrarian economy oriented towards food exports.
Norway and Sweden (along with Finland) were characterised by greater liberty for the peasants, a weaker nobility and a more differentiated economy, in which metal and timber exports played an increasing role. Both became centralised and well-run states built on solid foundations.
In Denmark, the king ruled alongside a council of high-ranking nobles until the introduction of the Absolute Monarchy in 1660.
In Sweden, power lay with the parliament of the four estates, a relatively strong institution composed of representatives of the nobility, priests, merchants and farmers.
The Lutheran Reformation played a major role in the establishment of the early-modern states in Denmark–Norway and Sweden.
The riches of the church were transferred to the state, and the state gained increased legitimacy from its new role as protector of the one true faith.
The Nordic Region therefore found itself allied with the Protestants in a Europe divided along religious lines. Naturally, this also entailed a certain degree of cultural isolation.
Purity of faith was an important principle during the period of Lutheran orthodoxy. Indeed, the Nordic Region remains overwhelmingly Protestant to this day – even after the introduction of freedom of religion in the 19th century.
Following the Reformation, intensive missionary work targeted the Saami in the north of Norway and Sweden, who found themselves increasingly caught in the net of state power.
To some extent in the 16th century, and certainly in the 17th, the Nordic Region did play a major role in European politics at the highest level. The struggle for dominion over the Baltic Sea and its rich trading opportunities raged between Denmark–Norway and Sweden, and began to impact upon the neighbouring peoples.
Sweden prevailed in the long term, and extended its reach into coastal tracts in modern-day Russia, Estonia, Latvia and – following The Thirty Years' War – Pomerania and other North German areas.
Sweden became a major European power. During the war in the middle of the 17th century, Denmark–Norway was forced to cede large territories to Sweden, including Gotland, Blekinge, Scania, Halland, Bohuslän, Härjedalen and Jämtland – all of which remain Swedish to this day.
The Nordic Region and the Baltic Sea area had long been isolated from European politics, but as Baltic Sea trade became ever more important and the area's stability was threatened by Swedish advances, the major European powers turned their attention to the Nordic Region.
The most important outcome of the Swedish–Danish war was that neither truly gained the upper hand. The major European powers, especially the Netherlands and France, halted Swedish expansion and did not permit the Danish to retaliate.
As neither Sweden nor Denmark–Norway won, neither was able to grow strong enough to play an important international role.
In the Great Northern War, Sweden lost most of its territories outside the old Swedish border, including Finland. Russia and Prussia became the new major powers in Northern Europe.
In the future, the Nordic Region would consist of small states whose integrity and sovereignty would depend upon both careful international positioning and allies among the major powers.