The Week That Was, August 28th – September 3rd 2017
Politics/Economy
The government presented tax reform proposals, business incentives and a draft budget that could lead to some of the biggest tax cuts for decades but critics claimed the coalition has been evasive about where the funding will come from – the Danish People’s Party (DPP), whose votes are needed to pass the legislation, demanded more spending, not less. Finance Minister Kristian Jensen said the measures are aimed at encouraging people more people to get off welfare and work – he also said foreigners and non-resident Danes shouldn’t be allowed to come to Denmark and claim welfare from day one. He acknowledged the proposals to cut taxes would increase financial inequality.
The latest figures from the Tax Ministry and a new study by The Confederation of Danish Enterprise (DE) revealed that despite 30 years of reforms and promises the level of taxation in this country has remained the same.
Denmark’s biggest trade unions joined together to combat rising inequality in society following the government’s proposed reforms that would reduce the overall tax burden by DKK23bn.
The Social Democrats dismissed the government’s claim of an extra DKK400m for research spending in the draft budget as ‘financial hocus-pocus’.
The government predicted the economy will grow by 2% this year and 1.8% next in its latest Economic Review, published Thursday. The latest figures from Statistics Denmark showed Gross Domestic Product (GDP) advanced 0.6 percent sequentially in the second quarter instead of a 0.5 percent growth reported initially, reflecting an annual rate of 2.7% – more than the EU and USA.
Prince Henrik may have retired and spends most of his time griping about his diminished role in the Danish monarchy but he’s set for a pay rise next year – the government’s draft 2018 budget contained a provision to give the Royal Consort DKK8.5m (€1.1m), a 4.9% increase. Queen Margrethe’s income will rise to DKK84.6m (€11.1m).
EU/Foreign Affairs
An increase in defence cooperation, the Baltic, and the threat from Russia topped the agenda when Defence Minister Claus Hjort Frederiksen held talks with his Swedish counterpart in Stockholm, Thursday – the two ministers said they would boost their military cooperation to counter the threat of Russian military buildup, cyberattacks and false news.
On paper, Danish development aid will be given a DKK4,5bn boost next year but according to the Social Liberals the extra spending created by a significant drop in asylum seekers is an attempt by the government to conceal previous cuts in programmes for women and the environment.
The government is considering whether to contribute financial aid to the new Group of Five Sahel (FC-G5S) joint military force being set up by five countries to combat human traffickers and terrorists in five countries south of the Sahara – Foreign Minister Anders Samuelsen said the FC-G5S has ‘direct relevance’ for Europe and subsequently Denmark.
After talks with his Cypriot counterpart Ioannis Kasoulides in Nicosia, Wednesday, Foreign Minister Anders Samuelsen said Cypus and Denmark agreed that the ‘EU should deliver tangible resource on issues that matter to the European citizens and their future, such as secure borders, end of migration, creation of jobs and growth.’
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Social Affairs:
4,323 migrants have been turned away since the government re-imposed border control in January 2016, while 331 people have been charged with human trafficking – Denmark’s current exemption from the Schengen open borders agreement that expires in November looks like being extended for a long period of time, despite warnings from the EU.
Education Minister Merete Riisager said politicians have been too slow to see the problems posed by the growth of Muslim free schools, following a new study showing the number of pupils at Islamic schools rose from 3,592 to 5,453 between 2008-16.
The cannabis market in Christiania is flourishing again less than a year after residents of the ‘free state’ tore down stalls following the shooting of a police officer.
Business:
The World Bank’s latest ‘Ease-of-doing-business’ index ranked Denmark at number three, behind only New Zealand and Singapore.
Goldman Sachs announced plans to sell off a further 1.78% of its shareholding in Dong Energy, diluting its overall stake to 2.7%.
Energy Minister Lars Christian Lilleholt said revenue from North Sea fields will continue to finance Denmark’s green transition and aim to stop using fossil fuels by 2050, even though Maersk has sold off its oil and gas division to Total.
Scandinavia’s flagship airline, SAS, warned of strike action from September 11th unless an agreement is reached on wages and work hours.
Following reports that new car sales have stagnated due to the government’s plan to slash sky-high vehicle taxes, Prime Minister Lars Løkke Rasmussen said he will try and put together a snap agreement to ease auto industry concerns.
Four former Uber drivers were fined a collective DKK 700,000 ($103,000) at Copenhagen District Court, Monday, for illegal taxi driving.
And That Was The Week That Was, August 28th – September 3rd 2017: To read all the above articles in full see: http://seven59.dk/archive (subscription required)