ABSTRACT
This chapter illustrates by opening quote from a report by the independent economic advisory body, the Danish Economic Councils, Denmark was hit hard by the financial crises and growth has been modest ever since. It focuses on how the Danish government responded to the crisis, concentrating especially on the cutbacks in central government. The chapter addresses the following research questions: How did the crisis evolve and what were the main crisis packages? How were cutbacks implemented in central government in Denmark, which cutback strategies and measures were used, and how can we interpret the decision process? It presents a descriptive analysis of the economic conditions prior to the crisis, the severity of the fiscal crisis and the adoption of different types of crisis packages at the government level. The chapter analyses how the cutback initiative was launched and implemented and investigate the cutback strategies and measures used. It discusses how the cutbacks have affected public organisation and management.
