While the fate of its car-making industry is the hottest story in Sweden
(and it looks pretty grim), the following - courtesy of my colleague
Flemming Juul Christiansen of the University of Aarhus - is what's
happening, and what might be about to happen, in Denmark.
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The Danish government today presented its tax reform proposal. It will
reduce taxation, especially for people with high incomes. The stated
purpose is to create incentives for work. The reform is underfinanced to
begin with, in order to help the economy. But in the long run – there
are in-built effects until 2019 - it is financed by increased taxation
on fat in foods, pollution, tobacco and soft water, as well as reduced
value of deductions. A proposal to cut student subsidies did not become
part of the proposal. The government is almost certain to have the
support of the Danish People's Party for a proposal very close to the
one presented.
At the same time, rumours abound as to why the prime minister, Anders
Fogh Rasmussen, has announced that he himself tomorrow will take
questions in the Folketing and thereby have a reason to make 'a special
announcement'. The speculation is that he will resign to become general
secretary of NATO. In that case, his successor would be elected at the
beginning of April. But that is not completely certain. If Fogh
Rasmussen does depart, there is no doubt that it will be the finance
minister, Lars Løkke Rasmussen, who is also vice chairman of the Liberal
Party, who will take over. He would be the third consecutive prime
minister with the name Rasmussen.
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Nick Aylott.
--
Dr Nicholas Aylott, senior lecturer (docent) in political science
School of Social Sciences, Södertörn University, Stockholm
SE-141 89 Huddinge, Sweden
www.sh.se/samhallsvetenskaper
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