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A senior OECD official has given the government’s austerity package that was announced yesterday low marks, regretting that the package has focused too little on curbing growth in the public sector and too much on fiscal policy.
“After a period with high Danish public sector growth, one could have hoped that there would be greater restraint here, and less of the financing was on tax issues. Denmark is already one of the countries in the world with the highest tax burden and the highest public spending,” OECD Deputy Chief Economist Jørgen Elmeskov tells Børsen. Elmeskov also has a seat on the government’s Growth Forum.
