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2012 OECD Economic Surveys: Denmark 2012

image of OECD Economic Surveys: Denmark 2012

OECD 2012 Economic Survey of Denmark examines recent economic developments, policies and prospects and looks in particular at consolidating public finances and improving energy and climate change policies.

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Consolidating public finances

Denmark stands out as a country with sound public finances. Public debt and the deficit are relatively low. So is the foreseeable impact of ageing on public finances compared with many other OECD countries. Nevertheless, the very high level of public expenditures and hence, of taxes, as well as difficulties in controlling these expenditures, have negative effects on the economy and could threaten public finances in the longer run. Consolidating public finances would require addressing the core of the problem, which partly lies in the fiscal relations between levels of government. There is also room to increase the efficiency of public spending in some areas such as health and education.

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