Falling oil prices costing Denmark billions

The state will have less elbow room for public spending

Lucie Rychla

Mar 10, 2016

The historically low oil prices are not only affecting Maersk or DONG, but also taking a toll on Denmark’s coffers.

Based on the Finance Ministry’s calculations, the country’s financial flexibility will shrink by 5 billion kroner by 2020 solely due to the falling oil prices.

Loss in tax revenue
It is the first time the ministry has analysed what the collapse in oil prices means in terms of public finances and how it can affect the state budget.

The ministry has lowered its oil price projections by 30 percent, basing its calculations on the price of a barrel of oil costing 70 instead of 100 dollars.

As a consequence, the state is expecting significant losses in tax revenue in the future.

This issue is expected to be the main topic at the current summit of the local government organisation, KL.

TOP STORIES

“Talents, start using AI tools now,” says Siri and Change.org founder

In an exclusive interview with The Copenhagen Post, the founder of Siri and Change.org, and currently VP of AI Experience at Airbnb, gives young talents advice on how to deal with the job market changed by artificial intelligence.
Testing free school meals for 20,000 kids and tax deduction for homeowners in 2025 Finance Act

The government has reached an agreement on next year’s Finance Act with SF and Radikale Venstre. A test on free school meals for a limited number of children will be introduced. Homeowners will get more options for deductions for home improvements
Make your voice heard as an expat

In my last op-ed, I made the case that we, expats living in Denmark, need to step up if we want to tackle the headaches that seem baked into expat life—e.g., counterintuitive laws and endless paperwork. With almost 16% of Denmark’s population made up of internationals, we actually have the numbers to influence real change. But after publishing the last op-ed, several readers contacted me and asked: Okay, but what can we actually do?
Danish politicians will double life science exports in a few years

“Strategy for life science” is a policy agreement to support the pharmaceutical industry’s opportunities to double exports to DKK 350 billion towards 2030
Royal House unveils new portraits of King Frederik and Queen Mary

Ten months after Frederik went from crown prince to king, new civil portraits of the new royal couple have been taken.
“Without internationals, we wouldn’t have the people we need,” says Fujifilm

Fujifilm’s Hillerød facility thrives with a diverse workforce, employing over 1,800 people from more than 65 nationalities. Morten Munk, Director of Global Alliance Management, highlights how the company’s rapid growth relies on attracting international talent due to Denmark’s limited pool of scientific professionals.

Connect club

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

5 Dec: A guided tour of Christiansborg

Career

“Talents, start using AI tools now,” says Siri and Change.org founder

In an exclusive interview with The Copenhagen Post, the founder of Siri and Change.org, and currently VP of AI Experience at Airbnb, gives young talents advice on how to deal with the job market changed by artificial intelligence.
“Without internationals, we wouldn’t have the people we need,” says Fujifilm

Fujifilm’s Hillerød facility thrives with a diverse workforce, employing over 1,800 people from more than 65 nationalities. Morten Munk, Director of Global Alliance Management, highlights how the company’s rapid growth relies on attracting international talent due to Denmark’s limited pool of scientific professionals.
“Now the biggest challenge is to retain internationals”, says Ferring

Mads Hougaard, senior HR director at the pharmaceutical company, explains that “it is also a challenge for society itself. I think collaboration between institutions, companies, and stakeholders could be beneficial.”

Want to advertise your job with CPH Post?

Jobs