Copenhagen adopts historic budget plan for 2025 with record investments in welfare and green transition

Several months ago, the term “historic” was repeatedly used by politicians as the government reached an agreement with the Association of Local Authorities regarding an economic package, described as “the largest boost for municipal finances in 15 years.” Following this, the largest municipality in the country has now adopted a budget plan for 2025 that allocates “historically high funds” for welfare and green transition.

The agreement includes parties such as the Social Democrats, the Red-Green Alliance, the Socialist People’s Party, the Radical Left, the Liberal Party, the Liberal Alliance, and the Danish People’s Party. Key points of the budget are as follows.

Significant investments have been earmarked for public schools and daycare facilities in Copenhagen, amounting to 156 million kroner, an unprecedented sum according to the agreement. This funding aims to ensure two adults are present in kindergarten and first grades, provide additional leadership in schools, hire transitional teachers, and support practical professional development.

Social welfare also sees substantial investment, with 511 million kroner allocated, including 200 million for purchasing residential accommodations to reduce waiting lists for disabled and homeless individuals.

Furthermore, parking costs are set to rise sharply, with hourly rates in designated green parking zones increasing from 25 to 43 kroner. The previous free Sunday parking will be eliminated, with only the first hour remaining free. This move aims to decrease car congestion and pollution.

Additionally, a significant investment of 450 million kroner will focus on Carbon Capture technology, potentially reducing CO2 emissions in the city by up to 900,000 tons annually.

Finally, the budget includes a modest income tax reduction, continuing a trend of decreasing taxes for the third consecutive year, amounting to a projected 560 million kroner savings for residents over four years.