Finance Minister Claus Hjort Frederiksen (Lib) has produced a catalogue of eight areas which will enable local councils to achieve zero growth, advance welfare and save DKK 10 billion each year, according to Berlingske Tidende.

“This is our answer to rebuff the claim that zero growth automatically leads to savings. This is a way that local councils can free up their own funds and can develop welfare,” Hjort Frederiksen says.

Hjort Frederiksen points to eight areas of local council rationalisation which the government says will produce at least DKK 10 billion in savings, including DKK 2.3 billion in child care and DKK 2.5 billion in elderly care.

The government’s rationalisation plan suggests the following areas:

Digitalisation of documents – 1.1 billion

Coordination of purchasing – at least 800 million

Reducing absenteeism – 400 million

Administrative streamlining – 1.9 billion

Consolidation of administrative tasks – 300 million

Child care – 2.3 billion

Schools – 1.3 billion

Elderly care – 2.5 billion

Economy Professor Torben Andersen, who is a former chair of the government’s Wise Men is sceptical.

“It is difficult to create a more effective administration in the public sector in the way the government suggests without reducing services,” Andersen says.