Denmark slashes corporate taxes, defies EU warnings with new coalition
Denmark’s new four-party coalition government, led by Prime Minister Mette Frederiksen, has unveiled a fiscal strategy that slashes corporate taxes and reduces VAT on food—moves that directly contradict the EU’s warnings about Denmark’s shrinking budget surplus. The measures, announced on Wednesday as Frederiksen began her historic third term, mark a sharp pivot toward economic stimulus despite Brussels’ projections that Denmark’s surplus will collapse from 4.5% of GDP in 2024 to just 0.5% by 2027, driven by soaring defense spending .
The government, which includes Frederiksen’s Social Democrats alongside the Socialist People’s Party, the Moderates, and the Social Liberal Party, will operate without a parliamentary majority, relying instead on ad-hoc support from left-wing allies. Key cabinet posts have been reshuffled, with Peter Hummelgaard taking over as finance minister—a promotion that strengthens his influence after predecessor Mattias Tesfaye, once seen as Frederiksen’s heir apparent, left the government .
In a first for Denmark, women now hold a majority of ministerial positions, a milestone Frederiksen highlighted as she presented the new team. The gender-balanced cabinet reflects broader shifts in the coalition’s priorities, which blend tax cuts for businesses with expanded social welfare—a rare combination that critics argue risks policy incoherence. The government’s program also includes a defiant stance against U.S. pressure over Greenland, signaling a more assertive foreign policy .
The fiscal maneuvers come as Denmark’s economy faces mounting pressure. The European Commission’s latest report attributes the plummeting surplus to unsustainable spending increases, particularly in defense, and warns of long-term risks if current trends continue. Frederiksen’s government, however, appears undeterred, framing the tax cuts as a necessary boost for competitiveness while maintaining robust public services .
With no majority in parliament, the coalition’s survival hinges on its ability to navigate competing demands from its eclectic partners. Observers are divided: some praise the government’s pragmatic compromise, while others caution that the lack of a clear ideological anchor could lead to paralysis. For now, Frederiksen’s third term begins with a bold economic gamble—one that will test Denmark’s reputation for fiscal prudence.
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Articles
Frederiksen unveils third Danish government with reshuffled cabinet Danish Prime Minister Mette Frederiksen announced her third government on Wednesday, unveiling a four-party coalition that reshuffles key ministers including the finance and justice portfolios, though the new center-left administration will lack a parliamentary majority and must rely on external support from left-wing allies to govern effectively.
yenisafak · 4 days ago
Dinamarca corta impostos às empresas e baixa IVA dos alimentos Terceiro mandato de Mette Frederiksen arranca com uma mistura rara de descidas de impostos e reforço do Estado social. Novo Governo dinamarquês promete resistir à pressão dos EUA sobre a Gronelândia.
publico · 4 days ago
Au Danemark, un nouveau gouvernement qui ménage la chèvre et le chou Le nouveau gouvernement danois, emmené par la sociale-démocrate Mette Frederiksen, a rendu public, le mardi 2 juin, un programme qui tente de satisfaire des partenaires aussi divers que la gauche écologique et le centre droit. Certains y voient tout un art du compromis ; dautres, le présage dune politique sans direction claire.
courrier international · 4 days ago
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eurotopics.net · 4 days ago
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lsm.lv · 4 days ago
Danemarca: Premierul Mette Frederiksen şi-a prezentat guvernul, format în majoritate din femei Prim-ministrul danez Mette Frederiksen a prezentat miercuri componenţa noului său guvern care, pentru prima dată în istoria Danemarcei, numără mai multe femei decât bărbaţi, relatează AFP.
digi24 · 4 days ago
Betraktades som Frederiksens kronprins – lämnar regeringen Mattias Tesfaye betraktades som en av Mette Frederiksens kronprinsar. Men nu lämnar han regeringen. Peter Hummelgaard blir finansminister och stärker sin ställning.
dagens nyheter · 4 days ago
Danemark: la Première ministre sortante Mette Frederiksen dévoile un gouvernement à majorité féminine Plus de deux mois après les élections législatives, la Première ministre sortante, Mette Frederiksen, a annoncé mercredi 3 juin 2026 la composition de son nouveau gouvernement. Une équipe marquée par une première historique : la majorité des ministres sont des femmes.
rfi.fr · 4 days ago
Denmark is ramping up spending so fast that surplus is falling, new EU report finds According to the European Commissions report, Denmarks public surplus is falling, dropping from 4.5 percent of GDP in 2024 to 2.9 percent in 2025, mainly due to increased defence spending. The Commission expects the surplus to fall further to 0.9 percent of GDP in 2026 and 0.5 percent in 2027. The Commission warned Denmark as […]
cphpost · 4 days ago