The fiscal space is increased by 11.25 billion Danish kroner by 2030, says Nicolai Wammen (Social Democrats) to Ritzau. The fiscal space is being increased by 11.25 billion Danish kroner by 2030, primarily due to more young and elderly people, non-Western immigrants, and foreigners being employed. This information comes from the Minister of Finance, Nicolai Wammen (Social Democrats), as reported by Ritzau. “We expect to see a very high employment rate in Denmark in the coming years,” he says. The fiscal space refers to the state’s expected economic surplus by 2030, predicting how much money can be spent. According to the latest forecast, the total fiscal space is close to 58 billion Danish kroner. Wammen is cautious about specifying how the money will be used. “The short and long of it is that the Danish economy is very solid. But we also live in a world of great uncertainty. It is important to remember that it was only a year and a half ago that we had the highest inflation in 40 years,” says Wammen.
As usual, there are various suggestions from other parties in the Folketinget (Danish Parliament), as well as business organizations and trade unions, regarding how the fiscal space should be utilized. Some want to prioritize using the money to reduce taxes, while others want to increase public spending. Wammen states that the government has not yet decided how the money will be used. He refers to the government’s 2030 plan, which outlines the overall direction of economic policy. “We will decide how to use this money at a later date,” he says.
The fiscal space has been increased twice in 2023, first by 16 billion Danish kroner and later by four billion Danish kroner. And now, it is happening again. The Danish economy is generally healthy and expected to remain so in the near future. Earlier in May, Minister of Economy Stephanie Lose (Venstre) presented the economic forecast for 2024 and 2025, indicating greater growth than initially estimated. A growth of 2.7 percent in the Danish economy in 2024 and 1.8 percent in 2025 is expected. Inflation is projected to be around 2 percent during this period.