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Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure DK-2020-31/2044 – measures in Denmark

DK2025 – Framework for the future fiscal policy in Denmark

DK2025 - Den danske regering publicerer en ramme for den fremtidige finans politik i Danmark

Country Denmark , applies nationwide
Time period Temporary, 01 August 2020 – 01 August 2025
Context COVID-19, Green Transition
Type Legislations or other statutory regulations
Category Promoting the economic, labour market and social recovery into a green future
– Support for spending, stimulus packages
Author Carsten Jørgensen (FAOS, University of Copenhagen), Anders Randrup (Oxford Research)
Measure added 12 October 2021 (updated 11 November 2021)

Background information

Due to lockdowns, several agreements about financial help packages, and high amounts of protective equipment, the Danish economy has been plundering. This has led the current government to publish DK2025. The government has released the framework, DK2025, to ensure a green, fair, and responsible recovery of the Danish economy after COVID-19.

Content of measure

The aim of the publication is to form the basis for future finance laws in Denmark. The goal is that the Danish economy recovers from COVID-19. The publication suggests an expansionary fiscal policy in Denmark, with the aim of getting the business cycle back to the norm, as before COVID-19. It is expected that the balance between revenue and expenditure will be balanced by 2025. The plan is that concrete measures and solutions to the problems faced by the Danish economy will be continuously added. In the release, three focus points are underlined. These are: The corona epidemic, climate development and the welfare society.

The government's overall priorities and economic policy objectives in the coming years towards 2025 includes:

  • Expansionary fiscal policy to stimulate activity and combat unemployment. Fiscal policy will be organized within the budget law, with room for maneuver in 2021. The respite will continue until 2024 and is gradually decreasing.
  • The relaxation is temporary and responsible. The medium-term objective of structural balance by 2025 will be maintained. The target supports low public debt and sustainable public finances.
  • New right to early retirement for people with a long working life.
  • Green transition towards the Climate Act's target of 70% emission reduction by 2030.
  • Room for more public investment. The framework for public investment is being raised, among other things to create space for new infrastructure and green investments.
  • Increasing employment. With the planned economic policy, there is a basis for progress in both private and public employment.
  • 2nd generation reforms. New reforms are focused on more people experiencing equal opportunities, getting an education, and becoming part of the working community.

Use of measure

The measure functions as a framework and foundation for the fiscal policy in Denmark for the coming years.

Target groups

Workers Businesses Citizens
Does not apply to workers Applies to all businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement as case not in social partner domain No involvement as case not in social partner domain
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: N/A


The framework was developed by the government.

Views and reactions

No major reactions, as the framework is not to be implemented directly but functions as the fundament for future fiscal policy negotiations and rebuilding of the economy after COVID-19.


  • 03 August 2020: DK2025 - en grøn, retfærdig og ansvarlig genopretning af dansk økonomi (


Eurofound (2021), DK2025 – Framework for the future fiscal policy in Denmark, measure DK-2020-31/2044 (measures in Denmark), EU PolicyWatch, Dublin,


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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.