This chapter examines recent progress in implementing structural reforms, reviews obstacles and identifies areas where continuing efforts are needed to broaden and deepen the structural reform agenda. At the time of the previous Survey in mid-2000, reforms of tax policy, the early retirement system, active labour-market policies (ALMPs) and competition and energy policies were being enacted. These have mostly been pursued as planned and have paid off in terms of further progress on a number of counts. In particular, unemployment has abated to its lowest rate in almost three decades, while the low-inflation environment remains well protected. Moreover, robust surpluses have been established on both the current account and the general government budget, the latter implying that Denmark – though already having high labour force participation rates – probably has a better starting point than many other countries for managing the inter-generational transfers implied by an ageing population.