Denmark's National Reform Programme

15-10-2007

Programme presented in the fall of 2005. Progress reports must be prepared in the intervening years within the defined three-year cycle for the Reform Programmes. The main focus in this progress report is on changes and initiatives undertaken in the last 12 months.

Summary

This progress report is the second follow-up on the National Reform Programme presented in the fall of 2005. Progress reports must be prepared in the intervening years within the defined three-year cycle for the Reform Programmes. The main focus in this progress report is on changes and initiatives undertaken in the last 12 months. However, emphasis is put on giving a cohesive description of the economic political strategy. The European Commission’s assessment of the first Danish Progress Report and in particular the points to watch for Denmark identified by the Commission are emphasised. Likewise particular attention is given to the specific areas for priority actions which were agreed upon at the European Council’s March 2006 spring summit

The Danish Reform Strategy builds on two decades of comprehensive structural reforms, particularly of the monetary policy, the fiscal policy and the labour market. Those reforms have ensured a robust financial balance in the public and private sectors after major imbalances in the previous decades.

The unemployment rate has fallen further since last years report and is now at the lowest structural and actual level in more than 30 years and employment is high compared to other countries. At the spring summit in March 2007 the European Council brought attention to the need to develop the flexicurity-model in the European economies. Flexicurity is a central part of the Danish labour market policy. Flexicurity is characterised by flexible rules for hiring and firing, an active labour market policy and an extensive unemployment benefit system which at the same time incite active job seeking.

In the Second Progress Report particular attention is given to the plan Towards new goals – Denmark 2015 which requires that new initiatives that permanently will strengthen the non-supported employment by 20,000 persons up until 2015 will be implemented. Particular attention is also given to the political agreement on the implementation of the Globalisation Fund which follows the Welfare Agreement and the Globalisation Strategy. Furthermore, particular attention is given to the Quality Reform which as a natural continuation of the reform of the municipal and regional structures focuses on how to ensure high quality in the public sector. Finally, particular attention is given to the national allocation plan for CO2 quotas and the energy strategy A visionary Danish energy policy.

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