Press release European Commission recommendations to Denmark 2015 The European Commission published on May 13 its draft recommendations to the EU countries’ economic policies for 2015. Denmark received two recommendations: 1) To avoid deviating from its medium-term objective (MTO) in 2016, i.e. a structural budget deficit of at most 0.5 per cent of GDP. 2) To enhance productivity, in particularly in the service sectors oriented towards the domestic market, including retail and construction. Ease the restrictions on retail establishments and take further measures to remove remaining barriers posed by authorization and certification schemes in the construction sector. Minister of Economic Affairs and the Interior Morten Østergaard says: "We are satisfied with the Commission's assessment of Denmark and the two recommendations. These are positive signals from the EU indicating that we continue to make progress, also compared to last year. I am pleased that the Commission recognises that we have come far with reforms on employment and education. And I agree with the areas of attention highlighted by the Commission. The reminder that we must continue to conduct sound fiscal policy, and that we can do more to increase productivity, is fully in line with the government's own agenda. A responsible economic policy and focus on increasing productivity is the basis for growth and job creation in Denmark.” “Last year, the government’s responsible economic policy resulted in the abrogation of Denmark’s EU recommendation under the Stability and Growth Pact. We will continue a responsible fiscal policy within the fiscal framework we have established in Denmark and the EU.” “Increasing productivity and creating more competition in Denmark is necessary, and is already a priority for the government. We have implemented a number of initiatives to strengthen competition in the domestic service sector, particularly in construction and retail trade, but we continue to reform where necessary. Our recent growth initiatives are good examples.” Background Each year the Commission publishes country-specific recommendations for each EU country, see Box 1. The recommendations will be discussed and adopted by the EU’s Economic and Finance Ministers (ECOFIN) in June for national follow-up in the coming year. Minister for Economic Affairs and the Interior, Morten Østergaard, takes part in adopting recommendations to all EU countries and has the overall responsibility to follow up on the recommendations to Denmark from year to year. th On February 26 the EU published a positive assessment of Denmark’s follow-up on the recommendations from 2014. Telephone 72 28 24 00 Fax 72 28 24 01 oim@oim.dk www.oim.dk Box1 The European Semester: Country-specific Recommendations  Every year in spring the Commission publishes draft recommendations to the EU countries’ economic policies, including fiscal policies, structural reforms and employment policies. The recommendations are part of the economic policy cooperation in the EU. The Commission's draft is based on country-specific analyses published in the Commission's country reports earlier in the year and on the Commission's assessment of the annual Stability or Convergence Programme and National Reform Programme presented by each Member State by the end of April.  The recommendations form the basis for the countries’ national economic policies, reforms etc., including fiscal budgets for the following financial year in fall.  All EU countries except countries with loan programs, receive recommendations. The euro area as a whole also receives recommendations.  The Commission's draft recommendations for 2015 are to be discussed by the Economic and Finance Ministers (ECOFIN) and the social and employment ministers (EPSCO) on the 18th-19th of June. The European Council is expected to endorse the recommendations the 25th-26th of June. Hereafter they are formally adopted at the ECOFIN meeting on 14th of July. For further information Birgitte Bjørnbak, Special Advisor, International Economics, bbj@oim.dk 72282617 Sigga Nolsøe, Head of Press, sno@oim.dk, 22269507 2