The Nordic welfare model, long the envy of many across the world seeking an egal...
COPENHAGEN - The Nordic welfare model, long the envy of many across the world seeking an egalitarian utopia, is creaking.
However, spending cuts by successive governments to reduce the public deficit have led to more people paying out of their own pockets for what used to be free. In an illustration of the simmering public anger at such cuts, the council’s move sparked an outcry on social media that prompted the prime minister to comment on the case in parliament and the decision to be reversed.
It featured in the last U.S. presidential election campaign, for example, when Democratic candidate Bernie Sanders pointed to Denmark as a model for his vision of an ideal American future. Nordic countries still top other high-spending OECD countries like the United States, Germany and Japan for public spending per capita on social benefits targeted at the poor, the elder, disabled, sick or unemployed.
Since the early 2000s, governments have also pushed through unpopular measures to encourage people to work longer. Frederiksen is however bound by a 2012 law not to allow a public deficit of more than 0.5% of GDP, much stricter than EU rules setting the ceiling at 3%.
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