DENMARK: Coalition government disagree on tax cuts

By in

The Venstre party leader Lars Lokke Rasmussen who is currently leading Denmark’s new centre-right wing government will no longer become a coalition with their joint election partner as the votes first indicated.
The Danish People’s Party (DPP) who are famously anti-immigration decided to refuse the multiparty offer after a disagreement over tax cuts which were being deliberated for high net earners.

The leading election winner was majority voted DPP, who became Denmark’s second largest party taking more than 21% of the vote. However in spite of efforts by the Liberals to persuade him into a partnership, the leader of the DPPs Kristian Thulesen Dahl has chosen to exercise the party’s influence in less prominent role and support the Liberals using a vote-by-vote scheme.

Lars Lokke Rasmussen’s package comprises a 5% reduction of the existing 15% surtax on the highest incomes over DKK 459,200 (€62,501) per annum. The DPP did not want to consent to this discount.

The Venstre party is now left single-handedly running the government with only 34 members in a 179-seat Parliament in Denmark. The party’s ability to implement any new policies, as well as the tax cut, is therefore said to be doubtful without much leverage with other parties.