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Danish PM denies internal rift over state loan proposal

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Danish PM denies internal rift over state loan proposal
Photo: Betina Garcia/Scanpix
13:04 CEST+02:00
Denmark's prime minister Lars Løkke Rasmussen has denied rumours of a spilt within the Venstre (Liberal) party after a minister called a proposal for a state loan system “socialist”.

Venstre's political group chairman Søren Gade said that he considered the proposal to reflect socialist policy, reports news agency Ritzau.

Rasmussen said that he would not drop the proposal despite the party's internal disagreement over it.

Leaked emails and anonymous statements given by Venstre MPs are evidence of a serious split within the party over the issue of whether the state should take control of lending money to home buyers from private mortgage companies, according to the report.

Several of Venstre's MPs are reported to have anonymously said that they would not back what would be a type of state bank, should the issue reach a parliamentary vote.

Rasmussen told Ritzau that he remained open to the proposal, which finance minister Kristian Jensen has claimed could provide two billion kroner ($307 million) to state funds.

“The government has made some considerations regarding the possible gains the state can make from guaranteeing loans in the normal sector,” the PM told Ritzau.

“There have been some discussions, and there will be further work over the summer,” he added.

READ ALSO: After years of scandals, here's how Denmark's reformed tax authority will look

Rasmussen rejected the description of internal disagreement over the issue as a ‘crisis'.

“No, there is certainly not a crisis. It is quite normal political work, which means that the government will present in August a finance law which will make certain guarantees. And that, of course, must be costed,” he said to Ritzau.

The PM declined to comment on the apparent disagreement between Gade and Jensen, who has called the proposal “classic Venstre politics.”

Neither did he wish to answer questions on the apparent leaks from MPs over the issue. 

READ ALSO: Interest rate cuts lead to new Danish 'super loans'

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