In May 2010 the Danish government and the Danish People's Party agreed on measures to consolidate public finances towards 2013.
With the Agreement, concrete initiatives have been decided to meet the recommendation from the EU to bring the deficit below 3 percent of GDP no later than 2013 and to improve the structural budget balance by 1½ per cent of GDP during 2011-2013. The agreement also delivers approximately 85 per cent of the required improvement in public finanses to ensure structural balance by 2015.
By specifying the budget improvements that were targeted in the Danish Convergence Programme 2009, the Fiscal Consolidation Agreement provides clarity on the concrete measures that will be implemented to meet the EU recommendation. It thus underpins confidence in Danish fiscal policy and lowers the risks of renewed financial turbulence pushing up interest rates.