Government forced to climb down over tax reforms

Fractious struggles within the fragile coalition that constitutes the present Danish government came to the fore again over the much-vaunted tax reform package

Stephen Gadd

At a press conference yesterday, Danish PM Lars Løkke Rasmussen had to concede that the government’s attempts to negotiate an ambitious tax reform package would have to be drastically scaled down.

The main bones of contention remain tax concessions for the highest earners and the insistence of Dansk Folkeparti that any tax reform be coupled with a tightening up of foreign policy – or as party leader Kristian Thulesen Dahl expressed it: “a paradigm shift in foreign policy”.

Pragmatism needed
Rasmussen emphasised that it is now all about negotiating a quick and less ambitious agreement, reports DR Nyheder. This would leave in place tax concessions for the lowest-paid workers and include greater incentives for people to save up for their pensions.

The PM also rejected the idea of coupling tax reforms and foreign policy. “The government is happy to discuss foreign policy with Dansk Folkeparti, but it has to be on foreign policy’s own terms. That way we devise the foreign policy that Denmark needs and that we can stand behind.”

In or out?
Shortly before Christmas, Anders Samuelsen, the leader of Liberal Alliance, made an astonishing volte face and voted in favour of the budget agreement – after previously threatening to leave the government if top tax concessions were not forthcoming.

READ ALSO: Liberal Alliance backs down from demands for tax cuts for high earners

The new budget for 2018 already contains more money for the health sector, the elderly and the police. The negotiations on the tax package are still ongoing.

TOP STORIES

  • In conversation with Conrad Molden: The man behind the mic

    In conversation with Conrad Molden: The man behind the mic

    He’s tickled our funny bone with countless wisecracks and clever wordplay, and in the process, made Denmark feel a little more personable to many expats. An international import himself, funny man Conrad Molden has successfully carved out a niche for himself on the Danish stand-up scene, but it’s taken a solid 13 years, much trial and error, and heaps of Danglish

  • Volunteer Night 2025: when volunteering rimes with integrating

    Volunteer Night 2025: when volunteering rimes with integrating

    On Wednesday, April 30, from 17:00 to 20:00, Studenterhuset will host Volunteer Night 2025, a free event organized by the organization International House Copenhagen, which goal is to ease the relocation process for newcomers in Denmark

  • The international who shaped Copenhagen

    The international who shaped Copenhagen

    Anna Maria Indrio is one of the most important architects in Denmark, having contributed to shaping Copenhagen into what it is today. Among her best-known projects are the extension of SMK and Arken, as well as the Natural History Museum and the Darwin Centre in London. She moved here 60 years ago, when “Copenhagen was gray and dormant. Predictions suggested it would become depopulated. But putting people at the center changed everything,” she said

  • Danish government passes amendment to increase citizenship fee by 50%

    Danish government passes amendment to increase citizenship fee by 50%

    Fees were raised to reflect processing costs and curb repeat applications, creating debate over whether the new charges erect barriers to political participation for internationals.

  • Internationals’ labour contributes 361 billion DKK to Denmark’s GDP, and it is growing strongly every year

    Internationals’ labour contributes 361 billion DKK to Denmark’s GDP, and it is growing strongly every year

    According to a report by the Danish Chamber of Commerce, internationals’ contribution is 12% of the country’s GDP. In 2023, it was 322 billion DKK, and in 2008, it was 136 billion DKK. “Internationals make a gigantic difference in our prosperity and welfare,” comments Morten Langager, the Director of Dansk Erhverv.

  • Inside Denmark’s innovation engine

    Inside Denmark’s innovation engine

    With half of its staff being international, the BioInnovation Institute reflects Denmark’s broader transformation into a global innovation hub. But can the country—and Europe—keep up the pace? “If reforms are made now, we can close the gap in ten years,” explains BII’s CEO

Connect club

Connect Club is your gateway to a vibrant programme of events and an international community in Denmark.

Sign up here

Career

Want to advertise your job with CPH Post?

Contact us

Jobs