SGI 2024 | Denmark | Executive Summary

Executive Summary

Recent Governments Experts

SGI experts on Denmark

Robert Klemmensen

Robert Klemmensen is a professor of Comparative Politics at the Department of Political Science, Lund University. He specializes in voter behavior, party strategies and the interactions between political institutions and voter preferences. He serves as an associate editor for the journal Political Psychology and he has published in journals such as Comparative Political Studies, European Journal of Political Research and Psychological Science.

Torben M. Andersen

Torben M. Andersen is a professor in the Department of Economics and Business, Aarhus University. He has published widely on labor economics, public-sector economics and the economics of the welfare state. He is affiliated with a number of research centers including CEPR(London) CESifo (Munich) and IZA (Bonn). Mr. Andersen has also been extensively involved in policy advice in Denmark, Norway, Sweden, Greenland and a number of other countries. Among other he has been He has held several chairperson posts, including those for the Danish Economics Council, the Welfare Commission, and has acted as deputy chairman of the Swedish Fiscal Policy Council.

Mi Ah Schøyen (Coordinator)

Mi Ah Schoyen is Senior Researcher at NOVA Norwegian Social Research. She holds a PhD in political and social sciences from the European University Institute and works mainly in the field of comparative welfare state research. Her interests include the welfare mix, the politics and social consequences of welfare state reforms, intergenerational solidarity and the interplay between climate and social policy. She has published on topics such as the Nordic welfare state model, the eco-social agenda in Europe and cross-national comparisons of consequences of early job insecurity. She has experience from several large collaborative international research projects.

Denmark’s democracy is robust and is characterized by a high level of political stability. Elections are conducted in an open and democratic manner, and anti-democratic movements remain fringe phenomena. Although political polarization has been increasing from a relatively low base, it has not yet disrupted parliamentary work. This stability is partly due to Denmark’s institutional setup and its long historical tradition of consensus-driven policies and cooperation among political parties to pass legislation. While political parties maintain their ideologies, they are also pragmatic, ensuring the core objectives remain stable. Clientelism does not influence the policies enacted.

The media in Denmark are free and independent, offering a wide array of news diversity. However, a concern is the shrinking number of newspapers, which reduces media pluralism. The Danish Broadcasting Company, publicly funded but perceived as independent from the state, provides unbiased news.

Denmark is a transparent democracy. Citizens have access to information, and several independent offices audit the government and bureaucracy. Civil society actively participates in the policymaking process, and social partners and interest organizations remain strong. Corruption cases are very rare, and the rule of law prevails.

Policymaking is horizontally coordinated through various internal government committees, the most critical being the Coordination Committee, chaired by the prime minister, and the Committee of the Economy, chaired by the minister of finance. These committees effectively function as inner cabinets. Vertical coordination also occurs in Denmark. While there is decentralization within the public sector to regions and municipalities, there is tension between promoting local autonomy and the welfare state objective of providing equal opportunities for all citizens.

Denmark has a tradition of independent commissions preparing and investigating solutions to major political issues and reforms, ensuring that scientific knowledge is part of the decision-making process. These commissions are typically chaired by prominent academics and have their own secretariats, ensuring independence from bureaucracies.

Denmark’s economic performance has been strong for several years. The labor market is flexible, the exchange rate peg has strong credibility, and public finances are sound. A series of reforms have ensured that fiscal policy remains sustainable, even against the backdrop of an aging population. However, the labor force is expected to remain roughly constant in the coming years, while the public sector’s need for labor is increasing due to the aging population. This is becoming a growing concern. Reforms to address the problem are being discussed, including recruiting employees from outside the EU and adopting a more liberal stance on labor migration. Denmark is also socially sustainable. The biggest current concerns are related to healthcare, as the universal healthcare system faces a double challenge: increasing public expectations and demands for welfare services, while the necessary workforce is increasingly unavailable.

The Climate Law, enacted in 2020 and updated in 2021 with a short-term emission reduction target for 2025 , sets ambitious goals for environmental policy and provides a path to achieve the targets set in the Paris Agreement. According to the law, Denmark aims to reduce its emissions by 70% using 1990 emission levels as a baseline by 2030. By 2050, Denmark is expected to be climate neutral. The law formulates five-year targets for greenhouse gas emissions and requires the formation of a Climate Council, responsible for monitoring government policy and voicing concerns if targets are not being met. Currently, the Climate Council finds it very uncertain that the target for 2025 will be met, partly due to the lack of political agreement on regulating emissions from agriculture.