Fanø Municipality set to receive 20 million kroner financial aid from Danish government

Fanø Municipality’s calls for assistance have been heard at the Danish Parliament, where politicians are prepared to provide financial aid to the island. The government plans to allocate an additional 20 million kroner in the upcoming budget as compensation for the extra costs associated with being an island municipality. This decision follows reports that the municipality was facing historic budget cuts of the same amount, according to the mayor.

Fanø’s radical mayor, Frank Jensen, expressed his relief upon receiving the news from the Minister of Interior and Health, Sophie Løhde. He noted that the funding would prevent the municipality from having to reduce its services significantly, allowing for development and growth instead.

Experts consider the government’s support a rare move. Kurt Houlberg, a professor specializing in municipal economics, stated that it is unusual for the government to intervene in this manner, particularly given the unique circumstances of Fanø Municipality.

In addition to the 20 million kroner, Fanø has already received 19.3 million kroner in governmental support. The new funding hinges on parliamentary approval, and since the budget for 2025 will be finalized after local budget approvals, the government has assured Fanø it can rely on this funding in its financial planning.

Fanø has faced challenges due to the equalization system established in 2021, which redistributes funds from wealthier municipalities to poorer ones, categorizing Fanø as affluent while neglecting its special context as an isolated island. The government plans to amend the legislation to allow Fanø to benefit from specific island subsidies, which could provide better financial security for the municipality in the years ahead.