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, and export-oriented economy A very large general government sector and generous welfare system constrain fiscal flexibility The ratings on the Kingdom of Denmark reflect policymakers' longstanding commitment to fiscal discipline and the country's rich and diversified economy. We expect the general government, which posted a 4.8% of GDP surplus in 2007, to continue posting significant fiscal surpluses of above 2% of GDP in the medium term. Ongoing tax cuts and initiatives to improve the quality of public services in Denmark may, however, put some strain
