Government unveils new 2025 economic strategy - The Post

Government unveils new 2025 economic strategy

Small changes now can lead to great improvement later, said PM Lars Løkke Rasmussen

True to his word (photo: Lars Løkke Rasmussen)
August 30th, 2016 1:30 pm| by Christian W

The Danish prime minister, Lars Løkke Rasmussen, has revealed the government’s new economic strategy looking ahead towards 2025.

The proposal, ‘Helhedsplan – for et stærkere Danmark’ (Master plan – for a stronger Denmark’), contains seven key areas including welfare, labour, competitiveness, refugees and education.

“The government’s plan reflects that we are adjusting numerous things simultaneously,” said Rasmussen during a press conference.

“When we act in time, then we can yield great improvements by implementing gentle change. We must show due diligence today in order to avoid tough reforms tomorrow.”

Read the entire plan here (in Danish).

The seven central parts of the 2025 plan:

1. It must pay to work

Among the steps that the government wants to take in order to increase the incentive for working includes reducing the top tax for incomes under 1 million kroner, promising higher wages for the long-term unemployed who return to work, and introducing tax-free working conditions for the homeless

2. Competitive conditions for companies

In order to improve the competitiveness of Danish companies, the government proposes setting up tax breaks for new entrepreneurs, deductions for investors, a strategy for shared economies, more affordable electricity, water and heating, axing the PSO tax, setting aside an additional 27 billion kroner for infrastructure investment and more tax deductions for investments into research and development

3. Better welfare and security

To boost Denmark’s welfare model and security, the plan suggests a welfare pool of 1 billion kroner, a national security pool of 800 million kroner, a competency pool of 1 billion kroner, renewing the public sector, increasing the framework for public investments and adding another six months onto the retirement age

4. Better education and a more robust SU system

The education arena will be given a lift by establishing a pool to lift the competencies of the Danes, overhauling the educational support model, having 8-10 thousand internship placements and better organising the future make-up of university educations

5. Better control of the refugee flow

In order to better handle the continuing flow of refugees who come to Denmark’s border, the proposal suggests an initiative in order to reject asylum-seekers at the Danish borders, stepping up integration efforts in rural areas and a more stringent policy regarding to sending back/repatriation and the granting of permanent residences

6. Better savings for a secure old age

To help the Danish elderly better enjoy their golden years, the strategy aims to make pension savings obligatory, set up a pension bonus and extra job deductions for people who save for their retirement and offer a better incentive for pension savings

7. Reserves for the security of Danes

The government wants to set aside 24 billion kroner to balance the current faulty real estate evaluation process when it is amended in the future and untold number of Danes will be getting money back from paying too much in housing taxes. Another 13.5 billion kroner has been set aside for the nation to handle unforeseen challenges that could take place in the future