Both the previous and the present government have maintained a sound fiscal policy with a satisfactory budget surplus. If Denmark's cyclical development also weakens, and unemployment rises, the budget will deteriorate when the automatic stabilisers set in. Lower fiscal revenues and higher expenditure on unemployment benefits are the classical examples of such budgetary reactions.
Even if these effects are rather strong in Denmark, the underlying favourable budget situation will accommodate their impact. It is important to maintain this room for manoeuvre, and therefore there is no scope for any fiscal-policy relaxation. Danmarks Nationalbank has continuously emphasised the importance of a firm and consistent fiscal policy.