The government and municipalities have reached an economic agreement for 2025, and the Ministry of Finance has invited to a doorstep event on Friday at 11 o’clock. This was announced by the ministry in a press release. From the government, Minister of Finance Nicolai Wammen (Social Democrats), Minister of the Interior and Health Sophie Løhde (Venstre), and Minister for the Elderly Mette Kierkgaard (Conservative People’s Party) will be present. The Association of Municipalities will be represented by chairman Martin Damm (Venstre) and vice chairman Jacob Bundsgaard (Social Democrats).
During the recent negotiations, there have been indications from Wammen that municipalities can expect a larger economic boost than usual for next year. This is due to the fact that the fiscal space has been increased by 11.25 billion Danish kroner by 2030. This is because more young and elderly people, non-Western immigrants, and foreigners have found employment. The fiscal space, which is a prediction of the state’s expected economic surplus by 2030, is now estimated at nearly 58 billion Danish kroner.
Wammen has previously refrained from specifying exactly how the money will be used. However, he told TV 2 News that the funds will go towards welfare as well as to municipalities and regions. Some of the funds will also be reserved for the upcoming budget negotiations later this year. Furthermore, earlier this week, Wammen announced that the government plans to reduce the state administration by 1,000 full-time equivalent positions by 2025. This number is expected to increase in the following years with more closures of state jobs.
Municipalities and regions have long criticized that they have to streamline and save in the local areas, while the state has previously been exempt. Wammen has responded to this criticism by promising a reduction in state administration by 1,000 full-time equivalent positions in the first year and more cuts in the coming years.