At the end of the day, the tax reform agreement forged between the government and the Liberals and Conservatives last Friday means less funding for welfare, Economy Minister Margrethe Vestager told DR Deadline on Sunday.

The idea behind the tax reform was otherwise to create some leeway for more welfare.

“There is less money for public consumption because we have used some of the funds to reduce taxes,” Vestager said.

Her comments came in the wake of a decision by the national leadership of the Socialist People’s Party to accept the deal, arguing that the tax reform would secure 2.7 billion kroner in increased public consumption.

All but one member of the SocPpl national leadership accepted the agreement at an extraordinary meeting at the weekend, during which the tax reform was discussed with the party’s ministers and MPs.

But Deadline and the Kraka think tank showed that instead of securing an increase in public consumption, the tax reform would actually mean DKK300million less for the public sector up to 2020.

The calculations show a reduction in order to finance the Liberal and Conservative wish to keep property owners free of increases through stopping savings on the military and Denmark’s EU contributions.

These were funds that had been earmarked in the 2020 Plan in order to increase public consumption by 0.8 per cent per year, according to DR Nyheder.

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