Government finally lands massive municipal equalisation agreement

Wealthier municipalities like Copenhagen, Gentofte and Rudersdal set to fork out millions to their less well-off counterparts

The municipalities in red and peach will be giving up more funds in the future (photo: Regeringen.dk)
May 5th, 2020 2:01 pm| by Christian W
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Following months of prolonged negotiations, the government has finally reached an agreement with Venstre, Radikale, Socialistisk Folkeparti and Alternativet regarding a huge municipal equalisation agreement. 

The agreement, which seeks to disperse funds more evenly across Denmark, will see the wealthier municipalities pony up hundreds of millions of kroner to the country’s less-fortunate areas. 

Check out DR’s interactive map to see how much your municipality will get or lose. 

The move is also expected to free an additional 6.5 billion kroner of state funding for the municipalities in 2021. 

“This agreement we present today is a cornerstone for a more balanced Denmark,” said the finance minister, Nicolai Wammen.  

“You should rightfully be able to expect a proper welfare society for you and your family, regardless of where you live in Denmark.” 

READ ALSO: The gap between rich and poor continues to widen

Gentofte’s $ –> Guldborgsund
Around 26 municipalities will have to fork out additional funds as part of the agreement –  Copenhagen will have to give up the most funds at an extra 465 million kroner annually, followed by Gentofte Municipality (164 million).

Others set to lose more money include Rudersdal, Hørsholm, Greve, Aarhus, Horsens, Frederiksberg, Kolding and Hillerød. 

At the other end of the spectrum, municipalities such as Vordingborg, Guldborgsund, Kalundborg, Næstved and Vesthimmerland will gain an extra 100 million kroner every year. 

Read more about the new agreement here (in Danish).