By: Jihum Cho, James Dillon Truscott, Thomas Lundstrom, Marc Pecnik Denmark By: Jihum Cho, James Dillon Truscott, Thomas Lundstrom, Marc Pecnik

Where? Denmark is sits north of Germany Source: Google images

Maastricht treaty Guidelines to control for - Inflation, Gov finance, Exchange rates, Long term interest rates, Defense actions, Defense spending, Judicial policy homogenization, labor laws, Immigration Laws, Etc.. EMU- To promote economic stability and unification through monetary policy homogenization.

Facts Cultural highlights Population: 5.5 million Currency: Kroner Main export: Industrial production, manufactured goods. ( Machines, Refined oil and gas) Cultural highlights 69’ First country to legalize Pornography 70’ Universal health care funded through taxes 89’ First country to legalize gender neutral marriage rights. “Conservative” Government control over these years. Source: Google Images

What kind of government ? -Constitutional monarchy Queen or King get to “Execute” laws created by elected parliament officials. By execute I mean sign the laws into being. Source: Google Images

What party runs the Government? Conservative liberal party ( Venstre) Center right leanings, Third largest party Lower taxes and Free Market Ideals Prime Minister Lars Rasmussen Source: Google images

Who makes Tax Decisions? Fiscal Affair committee, through Ministry of Taxation -Creation of taxes -Implementation of tax policy -Enforcement of policy Source: http://www.thedanishparliament.dk/Committees_and_delegations/Committees/SAU.aspx

Taxing & Spending Denmark collects the majority of its taxes from VAT(value added tax) and personal income tax, roughly 69%. Revenues in 2014: 200.3 billion dollars. Expenditures in 2014: 195.8 dollars. Denmark is operating a surplus. Tax revenue is 49% of GDP. The top tax bracket is 51.5%. Corporate tax rate is 23.5%.

Onset of Crisis Denmark has incredibly flexible policies for employers to hire and fire workers very easily. Other countries with more strict regulations regarding the hiring and firing on employees cut hours rather than jobs when the recession first hit.

Persons employed vs Hours Worked The average unemployment duration is 4 months in Denmark (post-recession). However, in the Netherlands and Germany, the average unemployment duration was 24 months and 19 months respectively (post-recession). This defines Danish, “Flexicurity”; flexibility for employers to hire and fire at will, and the security of government aid in the form of unemployment insurance and “activation policies”. ie, job training and unemployment insurance. Basically, Denmark is fine with a slightly higher unemployment rate because they are confident that their social programs aid those in search of jobs, making the time spent unemployed easier on those affected by job-loss.

GDP In Denmark, GDP growth fell from 3.4% in 2006 to -5.2% in 2009 On average, European OECD-countries experience a smaller decline (from 3.5% to -4.0%)

Unemployment Workers that lost jobs in the midst of the recession found employment rather soon; 60% after 13 weeks and 80% after 26 weeks. Job-finding rates are lower than before, they are still substantial and most unemployment spells are short, thus preventing unemployment from becoming persistent. The unemployment reaction of Denmark to the Great Recession has been severe, but is in line with a flexible labor-market model and the unemployment rate is still below OECD average (as a result of job creation and activation policies).

Initial Response First Country to enter Recession Summer 2008 Substantial Public Intervention Funding Guarantee Bail-in Roskilde Bank Liquidated Transferred to Financial Stability Company Tax Breaks

Bank Packages 4 Packages Stability (Oct. 5, 2008) Funding guarantee Credit (Jan. 18, 2009) Capital Injection Exit (Jun. 25, 2010) Haircut on unsecured senior loans Consolidation Guarantee against losses to a buyer bank

Recovery Slow Recovery Tax Reform Public Investment -0.6% GDP Tax Reform Public Investment Public Debt Increased Retirement Age Raised to 69 Corporate and Financial Sector Improving

Sources: http://www.thedanishparliament.dk/ https://en.wikipedia.org/wiki/Maastricht_Treaty https://en.wikipedia.org/wiki/Economic_and_Monetary_Union_of_the_European_Union http://www.imf.org/external/pubs/ft/scr/2014/cr14351.pdf https://economics.rabobank.com/publications/2013/may/country-report-denmark/ https://www.riksgalden.se/Dokument_eng/fsnc/Presentationer/fsnc2015-jesper-rangvid-presentation.pdf “A Flexicurity Labour Market in the Great Recession: The Case of Denmark” by Torben M. Andersen. Discussion Paper No. 5710 May 2011 http://www.voxeu.org/article/flexicurity-danish-labour-market-model-great-recession