Last month, on June 8, an estimated 40,000 protesters gathered outside the Danish parliament to oppose a programme of austerity measures by the Conservative-Liberal coalition government....
The government intends to slash state spending by 24 billion kroner (€3.21 billion) over the coming three years, in order to meet European Union targets for Denmark’s budget deficit. A recent prediction from the EU commission anticipates that the deficit will reach 5.4 percent of GDP by the end of the year... Last month, the commission suggested that Denmark be placed on a watch list of countries that must take action to curb their deficits if they are not to risk destabilising Europe’s economy.
The cuts outlined by Prime Minister Lars Loekke Rasmussen’s government will see serious reductions to welfare and social spending. Unemployment benefit will be reduced, with claimants only able to collect the benefit for a maximum of two years instead of the previous four years. The children’s allowance paid to parents will be reduced by 5 percent across the board, while funding will also be removed for couples seeking IVF treatment in order to have children.
The coalition relied on the support of the extreme right Danish People’s Party (DF) to pass the budget. It was DF that pushed strongly to cut the entitlement period for unemployment benefits by half... Such austerity measures notwithstanding, a government advisory body noted in a report that the programme of cuts was insufficient. The Economic Council urged the coalition to announce further reductions in public spending, advocating zero percent growth in government spending through 2020. It also called for a review of early retirement entitlements, aimed at preventing anyone from retiring prior to the age of 62...
http://www.wsws.org/articles/2010/jul2010/denm-j10.shtml