The Week That Was, December 12th – December 18th 2022:
Politics/Economy:
After six weeks of negotiations, Denmark has a new government – a ‘grand coalition’ that brings together the Social Democrats, the Liberals (Venstre) and the Moderates. Prime Minister Mette Frederiksen laid out the coalition’s political platform, Wednesday, entitled ‘Responsibility for Denmark’, outlining plans for, amongst other things, tax reforms, an emergency financial package for the hospital sector, and moves to tackle inflation.
The Social Democrats will have 11 ministers in the first centrist government for 44 years, the Liberals seven, and the Moderates five – there are eight women and 15 men.
The PM presented her new team of cabinet ministers, Thursday – Liberal leader Jakob Ellemann-Jensen was appointed deputy prime minister and defence minister, while Moderates leader, is the new minister for foreign affairs – yet another comeback for the former prime minister who quit as Liberal leader after the 2019 election and formed his own this year with the specific aim of pushing for a centrist coalition.
Liberal leader Jacob Ellemann-Jensen caused a stir at the new government’s first-ever press conference, Wednesday, by saying he still has prime ministerial ambitions and he sees Mette Frederiksen as a ‘middle manager’.
Ms Frederiksen’s former allies were unified in attacking the new centrist government – Socialist People’s Party (SPP) leader, Pia Olsen Dyhr, said she would do everything she can to move the coalition in a more ‘green, solidary’ direction, while Franciska Rosenkilde, head of the ‘green’ Alternatives, said it’s extremely unfortunate that in the midst of a growing climate crisis, Mette Frederiksen has chosen to side with the right-wing. Titular head of the far-left Red/Greens, Mai Villadsen, said the prime minister has made a drastic right-turn.
Former minister for foreign affairs, Jeppe Kofod, quit politics after failing in his bid to become an MP at last month’s election.
Inflation has slowed for the first time in 11 months – the consumer price index rose by 8.9% in November compared to the same month last year, considerably lower than October’s annual rate of 10.1%, a 40-year high.
Denmark’s industrial production declined by 2.3%, month-on-month, in October, following 1.3% growth in September
Foreign Affairs/EU:
Prime Minister Mette Frederiksen believes more subsidies for companies are the key to combatting the effects of the USA’s massive green energy package, part of President Joe Biden’s $369bn Inflation Reduction Act (IRA) – ahead of an EU summit in Brussels, Thursday, the PM said that whilst its positive to see an American government support green conversion ‘we need to monitor what it means for competition and trade very closely and consider EU state aid.’
The new government is determined to press on with plans to set up a processing centre for asylum seekers in Rwanda, even if the EU says no.
Denmark could come under increasing pressure to apologise for its colonial-era slavery if, as expected, the Dutch government does so later this month – Denmark has never formally apologised for its slave trade between 1670 and 1803 when an estimated 111,000 Africans were transported across the Atlantic before the illegal traffic was abolished in 1848.
The Faroe Islands’ Social Democrats mirrored their sister party in Denmark by winning the largest share of votes in an election, Thursday.
Social Affairs:
Although the three party leaders in the new government coalition promised an investigation into the Ahmed Samsam affair ahead of the election they’ve now all backed down – 32-year-old Ahmed Samsam was convicted in this country for drug trafficking, assault, and robbery before fleeing to Syria in 2012 to join the Islamic State (ISIL) – he later claimed he was travelling on behalf of either Danish Intelligence (PET) or Danish Military Intelligence (FE).
Criminal proceedings against suspended ‘spy boss’ Lars Findsen won’t be concluded until 2024 at the earliest – Copenhagen District Court doesn’t expect to reach a verdict for at least 16 months.
The unemployment rate rose by 1,800 in November, an indication that the labour market has ‘peaked’ and could be heading for a long, hard winter according to leading economists.
A new omicron subvariant is moving through Danish society at a rapid pace – BQ.1.1, which was found in only 0.5% of all tests three months ago, is now responsible for 40% of all cases and, according to the National Serum Institute, it’s only a matter of time before it becomes the dominant strain.
The price of electricity in Denmark increased by 15 per cent between the second and third quarters of 2022, and by approximately 83 per cent since the third quarter of 2021, the latest data from Energinet (Danish Energy Agency) showed.
Business:
Meta, formerly Facebook, has terminated a major expansion project in Denmark with immediate effect – the construction of two additional buildings at the media giant’s Odense Data Centre has stopped after primary contractor Aarsleff this week announced that its DKK 2.4bn ($343 million) contract has been terminated.
Danske Bank pleaded guilty to bank fraud in the U.S. on Tuesday and agreed to pay $2 bn – Denmark’s biggest bank admitted conspiring to commit bank fraud and providing banking services to suspicious customers through its Estonian branch despite knowing there was a risk of money laundering.
A group of investors launched an appeal against last month’s ruling by Lyngby District Court that cleared former Danske Bank CEO Thomas Borgen of any liability for shareholder investment losses caused by the money laundering scandal.
The National Bank raised its basis interest rate to 1.75%, from 1.25%, Thursday, following a similar increase by the European Central Bank (ECB) earlier in the day – the Danish bank said it was forced to make the move to protect the krone’s link to the euro.
50-year old Swiss national, Vincent Clerc, was appointed the new CEO of shipping giant A.P. Møller-Maersk – Mr Clerc grew up in the French-speaking part of Switzerland and will be the first non-Danish national ever to head Denmark’s biggest company.
Two major Danish biotech companies joined forces – Novozymes, the world’s largest maker of industrial enzymes, agreed to buy Chr. Hansen Holding for about DKK 87.1bn ($12.3 bn) to expand in the growing market for food and nutrition.
ATP, Denmark’s largest pension and social security provider, is investing hundreds of millions of kroner for a 15% stake in Danish solar energy company, Better Energy, one of the fastest-growing suppliers of solar energy in Northern Europe
Cut-price German supermarket chain is selling all its Danish operations to Norway’s Reitan Retail, which owns the Rema 100 discount stores.
And that was The Week That Was, December 12th – December 18th 2022: To read all the above articles in full see: http://seven59.dk/archive (subscription required).