A report from the Ministry of Economy and Trade says that Danish welfare is under threat due to inefficiency, a lack of ideas and the fact that Danes cost too much, adding that since 1995 only Spain and Italy have managed worse than Denmark in efficiency and productivity.

The bleak outlook for Danish welfare is part of a major analysis on Dansh productivity that the ministry is due to publish today, according to Berlingske Tidende.

Prime Minister Lars Løkke Rasmussen (Lib) recently set goals for improved Danish welfare up to 2020, saying that up to that date, Denmark should be among the world’s 10 richest nations. The report, however, suggests that the country is far from achieving its targets.

Copenhagen University Professor in Macro-economics Hans Jørgen Whitta-Jacobsen says that the prime minister needs to introduce extensive reforms of early retirement and the pensionable age if targets are to be achieved.

Economy and Trade Minister Lene Espersen says it is vital that Danish productivity is improved.

“If it doesn’t, Danish welfare will stagnate and it will be increasingly difficult for companies to manage global competition. We have to invest heavily in education, research and development and strengthen all forms of entrepreneurship,” she says.