On many counts, Denmark scores well in international comparisons. It is repeatedly ranked as the happiest nation in the world according to the Gallup World Poll (Helliwell et al., 2013) and enjoys a high level of well-being along many dimensions (). Labour market outcomes are better than average, and are accompanied by an outstanding work-life balance, low inequality and a good level of education and skills. Environmental quality is high, as are civic engagement and trust in institutions (OECD, 2013a). Public finances are also in relatively good shape, with a small debt-to-GDP ratio and budget deficit despite the shocks endured in recent years. Inflation has been low and stable. These outcomes are the result of sound policies and institutions.