It was a minority government with the parliamentary support of the Danish People's Party.

Apart from the EU Presidency in 2002 during which the enlargement of the European Union was decided, the main issues for the cabinet were the so-called tax freeze, which ended the upward drift in municipal income tax rates, tax cuts, law and order, limiting the number of refugees and immigrants coming to Denmark as well as the war in Afghanistan and Iraq.

In the 2005 Danish parliamentary election, Anders Fogh Rasmussen retained his parliamentary support, and was able to reform his cabinet as the Cabinet of Anders Fogh Rasmussen II, with a few changes from the Cabinet of Anders Fogh Rasmussen I.

On 18 June 2002 Flemming Hansen replaced Bendt Bendtsen as Minister of Nordic Cooperation.

In April 2004 Svend Aage Jensby resigned and was replaced by Søren Gade.