revision= it's the "C" in upper RIGHT corner for "Cafe Conditorei Löwen" ;-)
Einsiedeln, Hauptstrasse (pin set exactly), Switzerland, (Einsiedeln Abbey was famous for pilgrimages) pilgrim procession with pilgrimage banners, compare shop annex behind first banners is still existent (street views =>) external link external link «C» in upper left corner is from «Cafe Conditorei Löwen», compare old pics next links external link external link house in center = Hotel
Definitely a town in Switzerland, Fribourg perhaps, or Berne. Time is first half of 1950s, architecture is also very Swiss
definitely not scandinavia. Could it be Tyrol?
The flag looks scandinavian (Denmark, Sweden), but the architecture doesn't. If you look tightly you see that the picture shows a religious procession, probably on the occasion of the (roman-catholic) feast of corpus Christi. Alas, there are very few catholics in Scandinavia. I assume the picture is taken somewhere in northern Italy or Switzerland.
Possibly somewhere in Scandinavia!