The fiscal policy stance is determined annually in connection with the Finance Bill for the coming year and allowing for the expected cyclical development. Discretionary fiscal policy measures are rarely used in the course of the year and have typically included structural improvements. In the long term, the structural policy is most important. As the world keeps turning, structural reforms in principle never end.
The most appropriate speed and sequence of reforms e.g. depend on whether the output gap is positive or negative. This makes it difficult to draw a clear distinction between structural and fiscal policy. In international terms, including countries that apply best practice inflation targeting, Denmark has seen very moderate volatility in inflation as well as output in recent years.