Mette Frederiksen, the Social Democrat leader who has secured her third term as prime minister, thanked the other three parties – the Moderates, Green Left Party and Social Liberal Party – for the compromises that had made the agreement possible.
"The political direction is more than the sum of our four political parties. It is the result of a trusting collaboration," she said. "We have made the impossible possible."
Lars Løkke Rasmussen, the leader of the Moderate Party, said at the press conference that despite joining with left-wing parties, his centre-right party had nonetheless secured "an ambitious and balanced reform policy that strengthens the foundation of our welfare society".
"It's no secret that we would have liked to see a government across the middle. That couldn't be done," he said. "Now we'll have a government that includes someone in the middle. That might also be helpful."
At the core of the programme of the new government – which is calling itself the 'four-leaf clover government' or firkløverregering – is a major tax reform.
This will see the "middle tax" (mellemskat) and the "top-top tax" (toptopskat) abolished, and replaced by a two-tier system with a "bottom tax" for those with incomes up to 777,900 DKK and a single 15-percentage-point "top tax" for those earning above that threshold.
The government also plans to reduce business tax by a total of three percentage points over three years.
To help combat the rising cost of living, the new government will also halve the VAT on all food items and completely eliminate VAT on fruit and vegetables.
The new government also plans to reintroduce Great Prayer Day (Store Bededag) as a public holiday starting in 2030. But this will only happen under the plan if employment in Denmark increases to an extent equivalent to the growth caused by the original abolition of the holiday back in 2023.
While the Moderates celebrated the economic reforms, the Green Left Party boasted that the new government would be Denmark's "greenest government ever".
"We are four parties, but we are one government, and therefore I can also say without hesitation that I am very happy with the government foundation that has been created," the party's leader, Pia Olsen Dyhr, said at the press conference.
The new government plans to reduce Denmark's emissions by 85 percent by 2035 compared to 1990 levels, at the upper end of the 82 percent to 85 percent emissions reduction range in the previous government's climate plan. It also plans to convert 390,000 hectares of land to nature and forest, and to introduce a CO2 tax on livestock production.
When journalists asked Frederiksen if the Social Democrats had gained anything from the agreement apart from the prime ministerial position, she pointed to the increase in the so-called Arne pension – an early pension for manual workers – and an increase in funding for elementary schools.
The government also plans to bring in a strict ban on social media use for children under the age of 15.
Despite the inclusion of the pro-immigration Social Liberal Party, the new government is taking a strict line on immigration, with Frederiksen pledging that more criminals with foreign backgrounds will be deported under the new government, on the back of a new law reforming deportation rules which will be submitted to the Danish parliament.
She added that the government also wanted to continue working to establish reception centres outside the European Union, where asylum seekers would be housed while their requests were processed.
While backers argue they would act as a deterrent for would-be irregular migrants, those so-called "return hubs" have been hotly criticised by rights groups as "legal black holes" that could see migrants stranded in limbo with little oversight.
The government also plans to increase defence spending to 5 percent of GDP by 2030.
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