The Socialist Party Threatens Government

Enhedslisten, the party that represents the strict socialist movement in Denmark, has threatened to vote against its own budget if the sitting government does not change the bill to the support party's liking. Enhedslisten, translated as The Unity Party, has also warned the government not to go to the more conservative or European Liberal parties for their votes to pass the proposed budget, underlining the party would be a thorn in the side of the government, which is social democratic, in future negotiations.

Enhedslisten is complaining over tax cuts which it claims will be at the expense of welfare recipients and retirees and has stated it will hold the sitting government to promises it had made in the last electoral cycle. Enhedslisten role in parliament is as a support party in a coalition. The previous coalition government consisted of the largest conservative party with two support parties, where a single support party had the greatest influence and had negotiated for concessions in immigration. The influence help by Dansk Folkeparti came from the party's willingness to form a coalition government with the minority parties if the conservative Venstre did not make the desired concessions. Enhedslisten however lacks any commonality or even friendliness with the minority group.

Economists, referred to in Denmark as Wise-men (Vismænd), have both praised and criticized the finance reform. While criticizing the omission of reforms in property tax, pointing out the government could have received a few billion kroner in tax money, they have praised moving tax brackets so fewer pay the top tax and increasing the employment deduction, which is given to those in gainful employment and not those who are receiving income insurance or pensions. The Wise-men have also praised the intent of allowing wages to increase a little faster than pension or income insurance.

Enhedslisten criticized the reforms, pointing out taxes will cost those on income insurance 13,000 Kr a year. Tax cuts, according to the reform plans, will in part be financed by cuts to income insurance payment periods, reducing the current period from four years down to two years from 2013 and forward. Verner Kirk, director for AK-Samvirke, which organizes income insurance organizations in Denmark, has noted it will not be as easy as it was before to convince people to buy unemployment insurance. Ældre Sagen, the pensioner advocacy group for Denmark, has also criticized the reform, noting while the Elder Check may be raised by 4,500 a year, the base payment in public pension will be cut by over 13,000 a year.

-Servus