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
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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