An EU-funded report from a Turkish think tank has caused outrage in Denmark after it accused the country of widespread Islamophobia, with "exclusionary" political campaigns, and "a normalisation of everyday discrimination of Muslims".

The "European Islamophobia Report 2018" was put together by the Turkey's Foundation for Political, Economic and Social Research (Seta), with funding from the European Union.

It cites a law on daycare, the burqa ban, and Denmark's anti-ghetto legislation, as "discriminatory laws" which have come about as a result of "widespread rhetoric on the supposed incompatibility of Islam to 'Danishness'".

Denmark's Foreign Minister Jeppe Kofod told the Jyllands-Posten newspaper that he was "really angry" about the report.

"Of course, EU funds should not be used to finance a Turkish NGO's report on Islamophobia in Europe, including Denmark," he told the paper in a statement.

European Parliamentarian Niels Fuglsang, who represents the ruling Social Democrats, has said that he will demand an explanation from the European Commission.

"I don't think our taxpayer money should go to such a propaganda business for Erdogan. It is a scandal that EU money has gone to this and it must stop immediately," he told the paper.

Peter Kofod, from the anti-immigration Danish People's Party, went further, calling the report "a scandal".

"It's a scandal that the EU system finances this kind of completely insane stuff with the money that Turkey is getting formally ready to become a member state."