Nielsen demands clarity from Johannesen on state subsidy cuts in Faroe Islands

Bárður á Steig Nielsen, the chairman of the Progress Party, is demanding clarity from Prime Minister Aksel V. Johannesen regarding his commitment to reduce the state subsidy, despite shifts in the economic landscape.

In comments related to Question 52 directed at Johannesen, Nielsen highlighted a report from the Economic Council which indicates that the economy is under strain, necessitating measures on both income and expenditure fronts. The Economic Council noted a significant decline in economic growth, dropping from 10% to 3%, while inflation remains notably high.

“This suggests that economic growth may no longer be positive,” stated Nielsen.

He pointed out that the coalition agreement stipulates that any significant changes in economic conditions should prompt a reassessment of the decision to cut the state subsidy.

Given the deteriorating economic forecasts, which require more stringent measures to balance the national budget, one might expect Johannesen to reconsider these cuts. Nielsen emphasized that reducing income will directly impact welfare services in the Faroe Islands. Therefore, he is pressing Johannesen to confirm whether he intends to maintain the proposed reduction in the state subsidy.