Often there is lack of ability and willingness to acknowledge problems in time and take action. So stabilisation policy should first and foremost be achieved by introducing automatic stabilisers in the economy, observing sustainable medium-term spending targets and aiming for structurally balanced government budgets. Labour market structures should be designed to promote growth and employment.
When the crisis really hit the financial sector in September 2008, a large majority in the Danish parliament – the Folketing – implemented the first of a series of bank rescue packages which have softened the worst blows against the financial sector. It has been a great strength that these initiatives have received broad political support.