Denmark Country Risk Report - Business Monitor International - Industry Reports

Denmark Country Risk Report

Denmark Country Risk Report - Business Monitor International - Industry Reports
Denmark Country Risk Report
Published May 26, 2015
33 pages — Published May 26, 2015
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Source: BMI records Denmark s Gini coefficient as -- in ----, compared to -- in Germany, -- in the Netherlands and -- in the United Kingdom (a lower Gini coefficient represents less pronounced income inequality). However, in spite of the stability engendered by these factors, there are signs that the post-war consensus in Danish politics that has supported an extremely generous welfare state is com- ing to an end. ...However, this system faces a struggle on multiple fronts. Denmark s economic malaise, made all the more risky by the country s vast private debt burden, is leading politicians to enact reforms to the welfare state in order to ensure budgetary rigour in the face of EU Maastricht criteria, as well as to maintain inter- national competitiveness (see Focus Will Remain On Tax And Expenditure Reductions , August -- ----). Moreover, the younger generation of Danish voters, although more socially liberal than their parents, takes a much more relaxed attitude towards the siz- ing down of the welfare state. ...While there is little hard proof, many right-wing parties, such as the Danish People s Party, have propagated the belief that Denmark s immigrant and ethnic minority communities gain disproportionately from the benevolence of the country s welfare state. While Denmark lacks the extreme right-wing elements seen in other European states, such as France s Front National or

...Growth , May --), which marks a notable improvement com- pared to previous years, potential growth is firmly capped by structural obstacles. Denmark has fallen behind its regional peers in productivity gains and continues to boast one of the highest tax burdens in the region. ...Moreover, by opting to safeguard Denmark s public finances, with the fiscal balance swinging into surplus in ----, the Social Democrats ideologically aligned with the Liberals, further strengthening their hand. Nevertheless, the minority government under Thorning-Schmidt built consensus by ideologically aligning with the centre-right and relying on the implicit support of far-left parties when faced with the prospect of an early vote, which would play to the centre-right. Moreover, the Social Democrats have since adopted a firmly tough stance on immigration and asylum seek- ers, further highlighting the need to appeal to growing populist sentiment. ...As such, far-reaching welfare reforms remain some way off. Long-term Political outlook reform of Welfare state key issue over coming Decade

...Anti-immigration sentiment will dominate Denmark s political landscape long after the September general election. Given an already fragment- ed political system, in which consensus building is key to passing legis- lation, and improving economic conditions that will reduce the urgency for welfare reforms, we believe that structural reforms to boost eco- nomic competitiveness remain a long way off. ...

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Business Monitor International - Industry Reports—Established in 1984, Business Monitor International is a leading online publisher of specialist business information on global emerging markets. Business Monitor's range of quarterly services covers political risk, finance, macroeconomic performance, outlook and forecast, industry sectors and the business operating environment. Each Industry Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end-2012; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.

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Business Monitor International - Industry Reports. "Denmark Country Risk Report" May 26, 2015. Alacra Store. Oct 22, 2016. <>
Business Monitor International - Industry Reports. (2015). Denmark Country Risk Report May 26, 2015. New York, NY: Alacra Store. Retrieved Oct 22, 2016 from <>
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