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Govt. presents growth plan

The government has presented a growth plan it says will create 150,000 private jobs.

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The government has announced its growth plan for Denmark, reducing company taxes by DK 10 billion and increasing public investment by DKK 6 billion.

Overall the centre-left government expects to create 150,000 jobs in the private sector up to 2020 and increase growth by some DKK 40 billion over the next seven years, according to the “Growth Plan DK – Strong Companies, more jobs” incentive.

Flanked by Finance Minister Bjarne Corydon, Economy Minister Margrethe Vestager and Tax Minister Holger K. Nielsen, Prime Minister Helle Thorning-Schmidt said there were no quick fixes.

“We are creating jobs now, but we are also getting Denmark ready to grab the economic recovery when the internal slump turns,” Thorning-Schmidt said, adding that while there were no quick fixes the growth plan was a ‘step in the right direction’.

Economy Minister Margrethe went on to promise companies that the government will not be introducing any new taxes or duties.

“We are sending a clear signal to companies that we do not plan any new taxes and duties for businesses,” she said, adding “This is not just a growth package, it is a complete growth plan towards 2020”.

As expected, the plan contains a progressive reduction of corporate tax from 25 per cent to 22 per cent. At the same time, public spending will be kept in check, with growth in public consumption at some 1.0 per cent I 2013, 0.4 per cent in 2014, 0.5 per cent in 2015, 0.6 per cent in 2016, 0.7 per cent in 2017 and 0.75 per cent each year between 2018 and 2020. The government has previously calculated annual public sector growth at an annual 0.8 per cent.

Today’s plan is the third reform package that the government has published over the past week.

Last Tuesday the government published its proposal for a reform of the student grant system, utting DKK 2 billion off its ticket, while Employment Minister Mette Frederiksen announced yesterday savings of some DKK 1 billion as part of a social security reform. Among other things, that reform forces all under-30s to take an education.

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