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The future looks bleak for Denmark’s second smallest municipality, Fanø, both in the short and long term, unless the government allocates more funds to the island. Kurt Houlberg, a professor of municipal economics, expresses concern over Fanø’s financial situation, highlighting the challenges it faces as a standalone municipality without significant economic improvements and greater recognition of its specific issues by national authorities. Fanø is preparing to confront what has been described as its toughest budget ever, with unprecedented cuts affecting all residents, as the mayor notes. Despite receiving an additional 19.3 million kroner from the government, the municipality still faces a 20 million kroner shortfall for the upcoming budget year, amounting to nearly 10 percent of its total budget. The mayor underscores that the financial woes are not entirely the municipality’s fault; external factors have contributed significantly to the challenges. Political leaders at the national level have been approached regarding potential aid for the island. Anders Kronborg from the Social Democrats is open to assisting Fanø but does not commit to any guarantees. He suggests the need for a review of the equalization reform that causes Fanø to contribute to less affluent municipalities, whereas some island municipalities receive special grants. Dennis Flydtkjær from the Danish Democrats is more assertive in his support, advocating for possible one-time financial assistance. He believes funding can be identified within the national budget but cannot specify an amount. Conversely, Carl Andersen from the Liberal Alliance opposes direct funding for Fanø but is willing to discuss adjustments to the equalization reform that requires the island to pay 44 million kroner to other municipalities. He argues that financial distribution, rather than a lack of funds, is at the heart of the issue.

Thursday 12th 2024 on 18:55 in  
Denmark

The future looks bleak for Denmark’s second smallest municipality, Fanø, both in the short and long term, unless the government allocates more funds to the island. Kurt Houlberg, a professor of municipal economics, expresses concern over Fanø’s financial situation, highlighting the challenges it faces as a standalone municipality without significant economic improvements and greater recognition of its specific issues by national authorities.

Fanø is preparing to confront what has been described as its toughest budget ever, with unprecedented cuts affecting all residents, as the mayor notes. Despite receiving an additional 19.3 million kroner from the government, the municipality still faces a 20 million kroner shortfall for the upcoming budget year, amounting to nearly 10 percent of its total budget. The mayor underscores that the financial woes are not entirely the municipality’s fault; external factors have contributed significantly to the challenges.

Political leaders at the national level have been approached regarding potential aid for the island. Anders Kronborg from the Social Democrats is open to assisting Fanø but does not commit to any guarantees. He suggests the need for a review of the equalization reform that causes Fanø to contribute to less affluent municipalities, whereas some island municipalities receive special grants.

Dennis Flydtkjær from the Danish Democrats is more assertive in his support, advocating for possible one-time financial assistance. He believes funding can be identified within the national budget but cannot specify an amount.

Conversely, Carl Andersen from the Liberal Alliance opposes direct funding for Fanø but is willing to discuss adjustments to the equalization reform that requires the island to pay 44 million kroner to other municipalities. He argues that financial distribution, rather than a lack of funds, is at the heart of the issue.

Source 
(via dr.dk)