The government has finally dropped its controversial congestion charge toll ring around Copenhagen and according to reports is to spend DKK1 billion on cheaper fares and investment in public transport across the country.

Financing is to be found by tightening tax rules on leasing and demonstration vehicles. At the same time, a commission is to be set up to study ways to solve Copenhagen’s congestion problems, with a report to be ready by January 1, 2013.

Commenting on the decision to drop the divisive toll ring, Socialist People’s Party Leader and Foreign Minister Villy Søvndal seemed pragmatic about his party’s and the government’s toll ring U-turn.

“We didn’t get what we wanted, but instead of moping, we have chosen to see what we could get,” Søvndal tells TV2News.

“Actually I think it is a pretty big victory,” Søvndal says, but adds that it is unclear how much fares will be reduced.

“The situation is different. Previously we were discussing fare reductions in Copenhagen and only Copenhagen. Now we are spreading it out to more people, but that means there won’t be room for so much,” Søvndal says.

FACEBOOK – Follow Politiken’s News in English