On March 26, 2002, Standard&Poor's affirmed its ratings on the Kingdom of Denmark, reflecting the Kingdom's substantial fiscal flexibility and enduring macroeconomic stability. Denmark has an enviable track record of macroeconomic stability, underpinned by prudent fiscal management and structural reform. The new Liberal party-led government remains committed to prudent fiscal management, and despite the implementation of a tax freeze, fiscal flexibility is substantial. Furthermore, a continued strengthening of expenditure discipline, particularly among regional and municipal governments, will ensure that the government meets its fiscal targets. Renewed growth in employment is expected to give Denmark additional fiscal room to maneuver in the medium term. With surpluses projected to average 2.1% between 2002 and 2005, any additional flexibility is expected
