Prime minister Mette Frederiksen (S) has not a lot of money in the bank to finance its many promises of better welfare, soaring climate ambitions and early retirement to Arne and other run-down, write Monday Morning.
Her free economic room for manoeuvre towards 2025 has shrunk sharply and is now down to only $ 3 billion. It is much less than when she stepped to the minister, where the scope was on the whole 11 billion.
Sets the long light on and looks forward to 2030, it does not change much in the picture. Since she has only 5 billion dollars in free-space.
It shows the calculations, as the think tank Cepos has made for Monday Morning.
”There is not a lot of money to squander anymore. We have spent almost the rub and stub of the scope. The 5 billion should last over 10 budgets – or a half billion dollars per budget – with the want for better normeringer in kindergartens, nursing homes and schools. It is a very, very small free space,” says chief economist Mads Lundby Hansen from Cepos.
Even though the government has spent billions of dollars on astronomical packages as a result of coronakrisen, it doesn't have the big inroads on the scope. Both because hjælpepakkerne is temporary, and because the loans are accepted with an interest rate that is close to zero.
When Mette Frederiksen, has more money in the bank, is first and foremost along with her election promise that the public velfærdsudgifter must follow befolkningsmønsteret. As the number of elderly people and children increases the years, swallowing up a very large part of the scope.
It has also has been in the cards, that the government would make a new great economic 2030 plan, which sets new benchmarks for the Danish economy for the next many years. It could give her more money to dispose of.
She could get $ 12 billion extra in the room for manoeuvre, if she budgeted a small deficit on the public finances in 2030, at 0.5 percent of GDP, instead of as now, with balance, show the new calculations from Cepos.
But both coronakrisen and the radical leader, Morten Østergaard, the proposal to put a ceiling on the Danish retirement age of 70 years has created so much uncertainty about the Danish economy, that more's top economists now calling on the government to wait to make an economic the 2030 plan.
One of them is Torben M. Andersen, professor in economics at Aarhus University and former overvismand.
”Right now it is difficult to prepare a 2030 level. We do not know whether there will be a vaccine soon, and the crisis will be short-lived, or whether there goes some years. The uncertainty is fairly large. We had talked together a year ago, I would have sought after a the 2030 plan, but now it doesn't make sense,” says Torben M. Andersen.