Long-standing commitment to fiscal discipline, driving an uninterrupted decline in the general government debt burden Robust track record of prudent macroeconomic policies and structural reforms, underpinning low inflation and a stable currency Resilient, modern, diversified, export-oriented economy A very large general government sector and generous welfare system constrain fiscal flexibility The ratings on Denmark reflect policymakers' longstanding commitment to fiscal discipline. The general government, which posted a 4.7% of GDP surplus in 2006, is expected to continue posting significant fiscal surpluses, above 2% of GDP in the medium term (excluding flows to and from the defined contribution pension system). The recently announced tax cuts and initiatives to improve the quality of public services in Denmark may, however, put some strain
