On Friday, the government reached a new agreement on a package of economic reforms after winning the votes of the Socialist People's Party, the Radical Party, the Danish People's Party and the Christian Democrats.
The reform package is primarily aimed at providing more manpower in Denmark and therefore more work in the Danish business community.
Key points of the reform package:
- The agreement adjusts unemployment benefit rates (A-kasse) so that the monthly amount is increased for three months for workers who lose their jobs, while the amount is reduced for recent graduates.
- Allocating 1.2 billion Danish kroner annually from 2025 to increase the employment discount or labor discount beskæftigelsesfradraget.
- 3.5 billion Danish kroner must be provided to support businesses, which will then fund investments in education and the green transition. The expert group must find a way to secure this 3.5 billion kroner.
- Elderly retirees will be able to take up jobs.
Regarding the reduction of unemployment benefits for recent graduates, the agreement is currently facing criticism from Akademikerne, the main organization of 28 different unions that bring together people with academic degrees. Board chair Lisbeth Lentz commented, "It is truly regrettable that we are now looking at an agreement where the price has been paid for the future of Denmark – that is, young people will pay the price.".
The average monthly allowance for new graduates without children is 13,836 Danish kroner. With the new agreement, the first three months after graduation will be the same amount, but after that it will decrease to 9,514 kroner per month. For new graduates over 30 years of age without children, it will be reduced to 12,018 kroner per month.
In addition, it was decided that new graduates would only be able to receive unemployment benefits for one year, instead of for two years.
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