Several political parties are now expressing criticism of the government’s budget proposal for the 2025 financial law and are demanding a larger negotiation reserve in order to support the agreement. The government has initially allocated 500 million Danish kroner (approximately 72 million USD) for the negotiation reserve, but this amount is considered inadequate by several opposition parties.
Ole Birk Olesen, the finance spokesman for the Liberal Alliance (Liberal Alliance), has criticized this sum, describing it as merely a theatrical gesture. He argues that a reserve of half a billion kroner in a budget where the total exceeds 1 trillion kroner (approximately 144 billion USD) is symbolic and does not reflect a genuine willingness to involve other parties in the decision-making process.
The concerns are shared by other parties such as the Socialist People’s Party (SF) and the Red-Green Alliance (Enhedslisten). Lisbeth Bech-Nielsen from SF points out that the government, with its current majority, does not seem interested in serious negotiations. SF is demanding adjustments to several of the government’s proposals before they can support the agreement. One specific example is the wish for the tradesman deduction, a tax incentive for home renovations, to be targeted towards climate and energy improvements.
Pelle Dragsted, the political leader of the Red-Green Alliance, describes the government’s budget proposal as “stingy” and notes that it appears clear that the government does not wish to significantly include other parties in the negotiations, given their own majority.
This criticism is not new for the SVM government (the current coalition government comprising the Social Democrats, the Liberal Party, and the Moderates). Two years ago, the negotiation reserve was as low as 200 million kroner, while last year it was again set at 500 million kroner, which was later increased during the negotiations.
During the presentation of the government’s budget proposal, Finance Minister Nicolai Wammen did not comment on whether the reserve would be increased in response to the parties’ demands. However, he emphasized that last year’s budget was approved with a broad majority, including nearly all parties except the Red-Green Alliance.