Denmark - In-Depth PESTLE insights
COUNTRY ANALYSIS REPORT
Denmark
In-depth PESTLE insights
Publication Date: March 2011
OVERVIEW Catalyst
This profile analyzes the political, economic, social, technological, legal, and environmental (PESTLE) structure in Denmark. Each of the PESTLE factors is explored in terms of four parameters: current strengths, current challenges, future prospects, and future risks.
Summary
Key findings Denmark has an efficient governance system in place, but the rise of hardliners may lead to political instability in the future
Given its strong democratic traditions, regulatory quality, and governmental effectiveness, the political system of Denmark is a well-respected model. Denmark has a history of consensus-based policies, which means that legislation is enacted only after extensive negotiations and compromise with non-government or even opposition parties. This helps create a stable political environment for businesses, as policies reflect a wide range of interests, and are rarely reversed even after a change in government. Although there was an administration change in 2001 when the Social Democrats surrendered control to a coalition between Venstre, Liberal Party of Denmark and the Conservative People's Party, the new government maintained the existing welfare system and persisted with reform measures pertaining to the labor force and taxation; as a result, Denmark did not experience any drastic policy shifts. Nevertheless, the political landscape of the country has been changing in recent years due to increasing support for right-wing parties. The share held by the Danish People’s Party has been constantly increasing in parliament; in the 2007 elections, it gained 25 seats and is currently a partner in the coalition government. The party is known for its tough anti-immigration and anti-Islamic views. The rise of such parties may change the country's political and social landscape in the future.
The Danish economy recovered in 2010, but rising public
Denmark
In-depth PESTLE insights
Publication Date: March 2011
OVERVIEW Catalyst
This profile analyzes the political, economic, social, technological, legal, and environmental (PESTLE) structure in Denmark. Each of the PESTLE factors is explored in terms of four parameters: current strengths, current challenges, future prospects, and future risks.
Summary
Key findings Denmark has an efficient governance system in place, but the rise of hardliners may lead to political instability in the future
Given its strong democratic traditions, regulatory quality, and governmental effectiveness, the political system of Denmark is a well-respected model. Denmark has a history of consensus-based policies, which means that legislation is enacted only after extensive negotiations and compromise with non-government or even opposition parties. This helps create a stable political environment for businesses, as policies reflect a wide range of interests, and are rarely reversed even after a change in government. Although there was an administration change in 2001 when the Social Democrats surrendered control to a coalition between Venstre, Liberal Party of Denmark and the Conservative People's Party, the new government maintained the existing welfare system and persisted with reform measures pertaining to the labor force and taxation; as a result, Denmark did not experience any drastic policy shifts. Nevertheless, the political landscape of the country has been changing in recent years due to increasing support for right-wing parties. The share held by the Danish People’s Party has been constantly increasing in parliament; in the 2007 elections, it gained 25 seats and is currently a partner in the coalition government. The party is known for its tough anti-immigration and anti-Islamic views. The rise of such parties may change the country's political and social landscape in the future.
The Danish economy recovered in 2010, but rising public