The minister said she was aware of the issue, but had no ‘specific solution’ thus far.
Local municipalities have said they cannot afford to enforce parking rules due to the high rate at which money gained from parking fines is due to the state.
The law requires municipalities to hand over 70 percent of money received from parking to the state, an increase from the previous 50 percent. The law encompasses both parking fines and income from paid parking.
That means local authorities would lose money by enforcing parking rules, municipality officials have previously said.
“I’m concerned with us now giving this some serious thought, because there are several issues and considerations,” Krag said.
An open letter published by newspaper Berlingske, signed by a number of Danish mayors, called for the law to be rolled back.
“This is different depending on whether we are talking about rural municipalities, small towns or large cities who have sent the open letter,” the minister added.
In the letter, the mayors wrote that the law prevented them from using parking income to improve localities for residents, for example through investment in parking or environmental measures.
It also provides incentive for local authorities to charge more for parking, according to the argument.
Krag said several aspects must be taken into consideration before a solution can be found.
“Of course municipalities should have parking spaces and enforce parking rules. Traffic safety is also a consideration,” she said.
“There is also a discussion which must be raised with regard to climate investment. All these varies aspects must be considered. So there’s no straightforward change that can be made to solve the problem,” the minister added.