Economic Council calls for political reform in public sector amid economic pressure in Denmark

The economy is still under pressure.

This is the key message in the autumn report from the Economic Council.

The council emphasizes the need for political reform in the public sector. A central concern is the funding of elderly care, which falls under the responsibility of municipalities. The Economic Council suggests that national authorities should reassess this area, as it remains uncertain whether all municipalities can adequately manage elderly care.

Additionally, the council argues for changes in the fishing industry regulation, claiming that it distorts the labor market. This system discourages individuals from seeking employment in sectors that require additional workforce.

In terms of regulatory frameworks, the Economic Council advises political entities to implement a fiscal policy framework. This framework should aim to control the growth of public expenditure and ensure that municipalities are involved in its development. One approach to increasing the workforce supply is by raising the retirement age, while any reduction in working hours should be carefully examined for its impact on labor availability.

Notably, the Economic Council’s autumn report does not address the topic of the Suduroy Tunnel.

Further insights will be available during the midday radio news, when Johnny í Grótinum, the chairman of the Economic Council, will join the broadcast.