Danish finance ministry says country will earn 3 billion kroner by scrapping public holiday
The Danish state will receive 3.2 billion kroner in extra revenue annually if it abolishes a public holiday in a plan announced by the government.
The proposal, announced in the coalition policy agreement, will enable increased spending on national defence, the government says.
The plan to scrap a public holiday has received a mixed response. Spring’s Great Prayer Day is the most likely holiday to be abolished according to reports.
Economists have raised questions over the government’s calculations behind the plan, after it said the one less public holiday per year would effectively increase the size of the workforce by 8,500 full-time workers.
The government has now published the calculations used to arrive at the figures by which it has claimed the economy will benefit from the plan.
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- How can Denmark earn money by abolishing a public holiday?
- Denmark’s new government slammed over plan to scrap public holiday
The Finance Ministry argues the effect of removing a public holiday would be permanent because there is no evidence to disprove this.
Economists who spoke to Danish media, including Jyllands-Posten and Berlingske, have disputed this.
But in the newly-published analysis, the ministry maintains its calculations are correct. It also states that Denmark’s GDP will receive a boost of 9.4 billion kroner if a public holiday is abolished.
The government’s justification that the money is needed to accelerate defence spending has also met opposition and criticism.
The three-party coalition has an overall majority so can push the proposal through parliament without further support. However, it wants to include other parties in a new bill on defence spending.
Initial negotiations on a possible agreement are expected to begin in the near future.
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The proposal, announced in the coalition policy agreement, will enable increased spending on national defence, the government says.
The plan to scrap a public holiday has received a mixed response. Spring’s Great Prayer Day is the most likely holiday to be abolished according to reports.
Economists have raised questions over the government’s calculations behind the plan, after it said the one less public holiday per year would effectively increase the size of the workforce by 8,500 full-time workers.
The government has now published the calculations used to arrive at the figures by which it has claimed the economy will benefit from the plan.
READ ALSO:
- How can Denmark earn money by abolishing a public holiday?
- Denmark’s new government slammed over plan to scrap public holiday
The Finance Ministry argues the effect of removing a public holiday would be permanent because there is no evidence to disprove this.
Economists who spoke to Danish media, including Jyllands-Posten and Berlingske, have disputed this.
But in the newly-published analysis, the ministry maintains its calculations are correct. It also states that Denmark’s GDP will receive a boost of 9.4 billion kroner if a public holiday is abolished.
The government’s justification that the money is needed to accelerate defence spending has also met opposition and criticism.
The three-party coalition has an overall majority so can push the proposal through parliament without further support. However, it wants to include other parties in a new bill on defence spending.
Initial negotiations on a possible agreement are expected to begin in the near future.
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