Mr Rasmussen is widely expected to win again
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Denmark will hold an early general election on 8 February, the ruling Liberal Party said on Tuesday.
The party, led by Prime Minister Anders Fogh Rasmussen, has been in power since November 2001. It governs in a coalition with the Conservative Party.
Under the constitution, the prime minister can set an election date at any time during the government's four-year term.
Opinion polls indicate that the ruling coalition will win.
The centre-right government has tightened Denmark's immigration laws and supported the US-led war that toppled Iraqi President Saddam Hussein.
Denmark has 525 troops in Iraq, and correspondents say a change of government would be unlikely to lead to their early withdrawal.
Like the UK, Denmark has stayed out of the eurozone.
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