Prime Minister Aksel V. Johannesen stands firm on state grant reductions despite economic changes in Faroe Islands

There is no basis to reconsider the plan to reduce state grants. This statement was made by Prime Minister Aksel V. Johannesen in response to parliamentary member Bárður á Steig Nielsen’s inquiry about whether the plan will still be upheld despite the significantly changed economic situation.

The Prime Minister noted that with a projected economic growth of 3.3 percent, which is far from negative growth, there is no reason to revise the state funding strategy. However, he emphasized that if the situation changes and economic growth turns negative, the plan regarding state grants will be reassessed.

According to the coalition agreement between the Social Democrats, the Republic Party, and the Progress Party, there is an agreement to reduce the state grant by 25 million kr. per year during the electoral term, totaling 100 million kr.

The agreement also states that the plan must be reviewed if the economic situation shifts and growth becomes negative.