Prime Minister Anders Fogh Rasmussen retained his parliamentary support in the 2005 Danish parliamentary election, and was able to continue as head of his government. On 18 February 2005, he presented his updated cabinet, the Cabinet of Anders Fogh Rasmussen II. The main issues of the cabinet has so far been an administrative reform that slashed the number of municipalities and replaced the thirteen counties with five regions.
Anders Fogh Rasmussen has referred to the reform as the biggest reform in thirty years. Furthermore, a reform of the police and judicial systems is as of 1 January 2007 being implemented, changing the numbers of police districts and city courts from 54 to 12 and 82 to 22 respectively. Rasmussen retained parliamentary support in the 2007 election and continued as Prime Minister in the Cabinet of Anders Fogh Rasmussen III, formed on 23 November 2007.
On 8 June 2005 somebody made an arson attack on Minister for Refugees, Immigrants and IntegrationRikke Hvilshøj's home. Rikke Hvilshøj, her husband, and her two small children escaped unharmed. It is not clear who was behind the attack (Though one unknown group has claimed responsibility), or what the motive were. Following the attack security was stepped up for several ministers.
In January 2006 Prime Minister Anders Fogh Rasmussen became embroiled in the controversy of the Muhammad cartoons which initially were published in the Danish newspaper Jyllands-Posten.