The ratings on the Kingdom of Denmark reflect policymakers' longstanding commitment to fiscal discipline. The general government is expected to continue posting significant fiscal surpluses, more than 3% of GDP in the medium term (excluding flows to and from the defined contribution pension system). Having peaked at 80% of GDP in 1993, general government debt is expected to fall to an estimated 20% of GDP by 2010. The sustained decline in the public debt burden, coupled with a robust pension system and efforts to boost labor-market participation, is expected to provide sufficient fiscal flexibility to meet the challenge of an aging population. Denmark's strong macroeconomic policy record and its wealthy and resilient economy support the ratings. Denmark's external performance is
