Danish government announces GDP stimulus plan

lars-lokke-rasmusenThe Danish Prime Minister, Lars Lokke Rasmussen, has declared that his country will embark on a range of ambitious projects aimed at increasing the national GDP over the next decade.

The government stimulus package is hoped to propel Demark into the top ten of the world’s wealthiest nations by 2020. Included in the projections are improved private and public sector efficiency standards and the relaxation of laws which govern foreign employees and investment in Danish companies. The announcement represents the first major project unveiled by the new prime minister following his take-over from predecessor and namesake Anders Fogh Rasmussen, who resigned in 2009.

The move continues the raft of recent internal changes made by the prime minister who had just one day earlier overhauled his cabinet, leaving just four survivors. Additional sweeping reforms aimed at restabilising the Danish economy have also been announced by Rasmussen, who is determined to not attempt to ride out the economic storm but rather use it as an opportunity to build new strength.

The state budget is forecasted to run at a DKK 100 billion loss this year, around 5.5 percent of GDP. Rasmussen has stated his wish to bring this figure down to less than 3 percent. “Rising debt can be acceptable for a short period. But if it continues it would correspond to passing the bill on to future generations,” said Rasmussen, whose tax reforms have continued despite opposition protests.”The tax refinancing will make Denmark richer. It’s not part of the problem, but of the solution,” Rasmussen stated.

The Copenhagen Post reports that, to meet EU rules, the Danish government will redress its budget from next year, with a forecasted DKK 24 billion (USD 4.3 billion) in savings projected over the next three.

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