A new ruling centrist coalition in Denmark will promise to halve the VAT rate on food, provide free dental care, and cut taxes for the rich, a recent draft of the coalition agreement seen by Euractiv writes.
The draft, believed to be from yesterday, reflects the political priorities of Mette Frederiksen’s third government spanning the Greens, her own Social Democrats, as well as centrist Social Liberals and Moderates – the former led by the foreign minister of the outgoing administration, Lars Løkke Rasmussen.
To muster a majority in the Danish parliament, Frederiksen’s new government will be supported by left-wing Red-Green Alliance and the small environmentalist party The Alternative.
The final coalition agreement is to be announced shortly at a press conference in Copenhagen at 16:00 CET.
The line-up of Frederiksen’s new ministers are expected to be announced tomorrow morning.
Among other things, the paper promises:
Tax reform: The agreement proposes cutting food VAT sharply, including halving VAT on all food and removing VAT entirely on fruit and vegetables.
Top-top tax: The government would abolish the highest tax bracket, financed through a new model for taxing major shareholders.
Defence: The agreement commits Denmark to spending at least 5% of GDP on defence, security and preparedness by 2030, including 3.5% for defence, while accelerating EU defence cooperation and maintaining support for Ukraine.
Europe: The agreement casts Denmark as a more active EU player, pushing for a stronger and more independent Europe on defence, energy, digital sovereignty, trade and foreign policy — including deeper EU defence cooperation and continued support for Ukraine. “We are no longer on the periphery of European cooperation. Denmark is now a core European country”
Income tax: The middle tax bracket would be abolished, leaving a basic tax up to DKK 777,900 and a 15-percentage-point top tax above that level.
Dental care: The agreement pledges to move toward free dental care, starting with young people and vulnerable groups, as part of a broader welfare and health agenda.
Welfare and children: It sets aside DKK 5 billion permanently for “Children’s Denmark”, including schools, daycare staffing, youth wellbeing and support for disadvantaged families.
Climate and agriculture: The government promises tougher agricultural and environmental policy, including implementation of the green tripartite deal, more protected nature, restrictions on pesticides in vulnerable groundwater areas and tighter animal-welfare rules.
Tech regulation and taxation: Denmark would push EU-level regulation of tech giants, including action against addictive design, a European age limit for social media and higher tax contributions from large tech firms.
(bw)
Source:
www.euractiv.com