The ratings on the Kingdom of Denmark reflect policymakers' longstanding commitment to fiscal discipline across the political spectrum, supporting the sovereign's fiscal flexibility despite a comparatively heavy tax burden. The ruling centre-right coalition, in power since 2001 and re-elected in February 2005, has based its fiscal policy on a tax freeze, offset by restraint on government consumption growth. The general government is expected to continue posting significant fiscal surpluses, equivalent to 1%-2% of GDP in the medium to long term. The general government debt burden has been halved since its peak of 81% of GDP in 1993. It is forecast to continue declining steadily in the medium term, reaching 33% of GDP by 2007. Denmark's strong macroeconomic policy record and
