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2022 DANISH ELECTION

Moderate party downplays importance of joining new Danish government 

After another round of negotiations with acting Prime Minister Mette Frederiksen, Moderate leader Lars Løkke Rasmussen says it’s beside the point if his party joins Frederiksen’s vision of a ‘broad, central’ government.

Published: 1 December 2022 13:21 CET
Moderate party downplays importance of joining new Danish government 
The Moderate party could put its votes behind a centrist coalition without being part of the government itself. Photo: Ida Marie Odgaard/Ritzau Scanpix

Rasmussen, who was Prime Minister before Frederiksen when leader of the Liberal (Venstre) party, led the newly-formed Moderates into parliament in their first election on a platform of installing a centrist government.

The Moderates have a relatively strong hand in the negotiations with their 16 seats from 9.3 percent of the vote share in the election, which took place one month ago.

“For us, it’s not a separate ambition to be part of such a government,” Rasmussen said outside of the prime minister’s official residence at Marienborg on Wednesday.

“Whether we are in or not is less important. But we want to put ourselves in a position where we can influence the content. That’s what matters,” he said. 

“It strikes me that Mette Frederiksen and I go a long way towards sharing the analysis of what’s good for Denmark,” he added.

READ ALSO: What does Denmark’s Liberal party want from government negotiations?

Rasmussen has previously backed a potential government involving the Social Democrats and Liberals along with the Moderates, calling it an “excellent starting point”.

But he said on Wednesday that his party could lend support to a central coalition without being part of the government itself.

The Moderates could be influential “by forming the parliamentary basis for a government which consists of parties from both sides of the infamous political centre,” he said.

Although the centrist party is heavily involved in talks led by Frederiksen, it does not have decisive seats which could give either the left or right wings an overall majority. The left wing ‘red bloc’ took a single-seat victory in the November 1st election, meaning a left-wing government could be formed without the support of the Moderates.

But Frederiksen has eschewed the option of a government reliant on the support of the parties furthest to the left, the Red Green Alliance and Alternative, maintaining her pre-election pledge to seek a coalition across the centre.

There is no majority which could put a ‘blue bloc’ or conservative government in place.

READ ALSO: Five things to know about the Danish election result

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ECONOMY

KEY POINTS: What is in Denmark’s 2023 budget proposal?

Denmark’s coalition government presented on Thursday a new budget proposal in which it said it was “stepping on the brakes” on state spending.

Published: 23 March 2023 17:26 CET
KEY POINTS: What is in Denmark’s 2023 budget proposal?

Danish budgets are usually tabled and eventually adopted during the autumn, but last year’s election disrupted the normal timetable.

The proposed budget, given the title “A Responsible Way Forward” (En ansvarlig vej frem) was presented by ministers from the three coalition parties on Thursday: Finance Minister Nicolai Wammen, acting Defence Minister Troels Lund Poulsen and Culture Minister Jakob Engel-Schmidt.

A cautious economic approach to spending is needed given global circumstances including the war in Ukraine, inflation and last year’s energy crisis, Wammen said.

“Even though a lot of things look good when we look at the Danish economy, that doesn’t change where we are. Uncertain times,” he said.

Engel-Schmidt added that some might describe the proposed budget as “boring”, given that it “doesn’t bring a shower of presents”.

Key points from the proposed budget are outlined below. The proposal will go into negotiations with other parties in parliament before being voted through in its final form.

Inflation assistance to lower income groups 

Last year saw the highest inflation rate for 40 years in Denmark, and the effects will still be felt in 2023 even if the inflation percentages themselves are less severe.

Although the government wants to “step on the brakes”, it has still set aside 2.4 billion kroner for financial assistance to people vulnerable to rising prices.

Some 1.1 billion kroner will be spent on 5,000 kroner “cheques” for elderly persons who receive social welfare. People who have high medicine costs and students who receive subsidies because they must provide for others, such as single parents (SU-forsørgertillæg) are also among groups to be assisted with the inflation spending.

READ ALSO: Danish government agrees inflation package for vulnerable families 

‘Acute plan’ for hospitals

An agreement with regional health authorities on an “acute” spending plan to address the most serious challenges faced by the health services has already been agreed, providing 2 billion kroner by the end of 2024.

The agreement was announced by the government along with regional and municipal officials in February.

READ ALSO: What exactly is wrong with the Danish health system?

‘Lower than ever’ reserve fund

A so-called “negotiation reserve” (forhandlingsreserve), a pool of money in the budget that can be allocated at a later date based on agreements between parties, has been significantly cut to 200 million kroner.

A 2023 budget proposal from August last year, which was not adopted due to the election, had the fund at 600 million kroner. The reserve has been as high as 1.5 billion kroner in the past, according to broadcaster DR’s report on Thursday’s proposal.

The previous, single-party Social Democratic government was reported to favour mental health services and the elderly as areas which could benefit from the fund in 2023.

The lower amount is partly due to the shorter timescale of this year’s budget. The 2024 budget will be proposed and passed in late 2023 under the regular timetable.

“There are still things we can prioritise but we are asking you to take responsibility to get Denmark through while inflation is still a major challenge,” Wammen said.

Spending on courts system

Some 32.2 million kroner has been put aside to specifically target a reduction in waiting times for court dates, DR writes. The money is part of a larger amount, 185 million kroner, to be spent on the courts.

Denmark’s courts system has in recent years seen a rising number of criminal cases and lengthy processing times.

Broadband internet to get boost in rural spending

The “broadband fund” or bredbåndspulje will get an additional 100 million kroner to improve coverage in areas that still have patchy connection.

Another 100 million kroner will go into the landsbypulje or “Village Fund”, giving rural municipalities funding for demolition or renovation of deteriorated buildings.

Ukraine

A majority in parliament has already voted in favour of a seven-billion kroner fund in 2023 to help Ukraine defend itself against the Russian invasion.

The fund will be spent on Danish military, civilian and commercial assistance to Ukraine.

Part of the spending is funded by Denmark’s international development budget, while over 5 billion comes from spending an increased portion of the national GDP on the 2023 budget.

READ ALSO: Denmark announces seven-billion kroner Ukraine fund

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