In good times there will be pressure to relax fiscal policy by lowering taxes rather than to let the automatic stabilisers work to improve the government surplus. At a weak point in the economic cycle there will also be pressure to relax fiscal policy in order to stimulate economic growth.
Denmark has avoided this kind of fiscal activism for a number of years, and only minor adjustments have been made in connection with the annual Finance Acts. Danmarks Nationalbank's comments on the government's so-called “spring package” should be viewed in this light. I take this opportunity to repeat our comments issued in connection with the publication of Danmarks Nationalbank's Annual Report.