Denmark's Convergence Programme 2007

28-01-2008

Denmark's Convergence Programme 2007

Denmark’s Convergence Programme 2007 (CP2007) is based on the so-called 2015-plan published in august 2007, cf. Towards new goals – Denmark 2015 . The 2015-plan replaces the 2010-plan, which with subsequent updates has formed the basis for fiscal policy since its presentation in January 2001. The latest update of the 2010-projection was released in Denmark’s Convergence Programme 2006 (CP2006).

The 2015-plan, and consequently CP2007, is based on the short-term economic forecasts presented in Economic Survey, August 2007 , which incorporate the August budget proposal for 2008 and the agreements reached in June regarding the local government finances for 2008. In light of the parliamentary elections held on November 13 th , fiscal policy for 2008 is not yet finalized. A new budget proposal and short-term forecast is expected to be released around 1. February 2008.

On 23. October, the Danish Parliament (Folketinget) passed key elements in the agreement Lower tax on labour reached in September. The agreement deviates from the original tax proposals in the 2015-plan on certain points, and the agreement is incorporated in CP2007.

On 22. November, the Danish government announced the new coalition agreement Society of Opportunities, VK Government III . The government platform emphasizes that the 2015-plan sets the overall framework for fiscal policies towards 2015.

The government platform and the 2015-plan point to a continuation of the reform strategy of recent years. Since 2001, retirement systems, education, research, labour market policies and the structure of the public sector have been reformed. The strategy presented in the government platform focuses, in particular, on a tax reform, further labour market reforms, higher public service quality, as well as ambitious goals in the areas of climate and energy policies.

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