Denmark will be the best place in the world to conduct business over the next five years, according to the Economist Intelligence Unit's latest business environment ranking. The country scored well in all ten ranking categories (see methodology) and stands out in particular for three things: its successive governments' pro-business policies; structural reforms that have increased labour market flexibility; and a fiscal policy that has targeted surpluses without compromising the quality of public services.

One of the most attractive aspects of Denmark's business environment is its labour market—Denmark's "flexicurity model" has become the yardstick for reforms in other European countries in recent years. The system combines low, non-wage labour costs and few restrictions on hiring and firing with high unemployment benefits (funded by the state, not business, via income tax) and opportunities for workers to upgrade their skills. This provides a high degree of flexibility for employers while generating a high level of employment and income security. Denmark's overall tax burden and marginal taxes are high, but these help maintain a well-educated workforce, good transport and communication infrastructures, and excellent public services.