Strengthening Governance in relation to fiscal risks in Denmark

The Commission is supporting the Danish Ministry of Finance in defining and implementing appropriate processes and methodologies to strengthening governance in relation to fiscal risks.

Context

The Danish Ministry of Finance is seeking to improve its fiscal risk assessment capabilities. The Danish government wants to improve its decision-making process when issuing guarantees or loans for green investments by developing a new framework for assessing credit and fiscal risks.

Support delivered

The Commission and international experts provided the following support measures:

• Analysis of European and international good practices for fiscal risk assessment frameworks;
• Collection of recommendations for a new framework to assess fiscal and credit risks in an accurate and cost effective way;
• Development of a manual on how to conduct fiscal risk assessments.

Results achieved

Commission’s technical support helps the Danish authorities to get a better understanding of the potential threats related to their fiscal position in order to reduce the risks of future fiscal losses. Thus, the technical support contributes towards stronger fiscal resilience and increase the transparency of Danish public finances in the longer term.