Concerns raised over potential consequences of political shifts regarding block grant from Denmark to Faroe Islands

Concerns have been raised regarding potential severe consequences if political priorities shift to eliminate the block grant from Denmark. The chairman of the Union Party expressed that such changes could negatively impact welfare, countering recent remarks made by the CEO of the National Bank.

Bárður á Steig Nielsen warned that a shift in political prioritization could lead to a reduced standard of living, resulting in population decline. He emphasized the significant role that the one billion Danish kroner received from Denmark plays in the Faroese economy.

Malan Johansen, the bank’s CEO, pointed out specific reforms that could strengthen the Faroese economy, such as restructuring the domestic fishing fleet to contribute more to resource revenue. However, Bárður á Steig Nielsen contended that such changes would have limited impact on the overall economic landscape and that the opportunities for improving the domestic fleet are minimal.

A discussion with Bárður á Steig Nielsen, chairman of the Union Party, can be accessed for further insights on this issue.