Denmark's Convergence Programme 2006

20-12-2006

Denmark’s Convergence Programme 2006 is prepared in accordance with the reformed Growth and Stability Pact. The Convergence Programme is prepared once a year and sent to the EU.

Denmark’s Convergence Programme 2006 is prepared in accordance with the reformed Growth and Stability Pact. The Convergence Programme is prepared once a year and sent to the EU. The main conclusions in Denmark’s Convergence Programme 2006 are:

  • The projection presented in the Convergence Programme imply that fiscal policy essentially fulfils the requirement of sustainable public finances – without requiring further labour market initiatives.
  • The sustainable scenario requires that the large public surpluses achieved in these years are used to reduce public debt. The present cyclical situation characterised by high activity also requires prudence in fiscal policy.
  • The Welfare Agreement provides a markedly stronger financial basis for public welfare arrangements for many years ahead, as life expectancy and the number of elderly citizens is set to increase.
  • Spending for health care and long-term care will remain a major fiscal policy challenge.
  • The Convergence Programme implies (structural) public surpluses above 1 per cent of GDP per year for the period towards 2010.

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