22 Danish municipalities receive one billion kroner support package

Twenty-two of Denmark’s most financially pressured municipalities will share one billion kroner in special grants, DR reports. Forty-five municipalities had applied for the funding, which is intended for areas facing demographic and socioeconomic challenges.

The grant pool is being distributed as municipalities prepare next year’s budgets, with money needed for schools, childcare and elderly care. The allocation was announced by the Ministry of Economic Affairs and the Interior ahead of a press conference.

Minister for Economic Affairs and the Interior Pia Olsen Dyhr of the Socialist People’s Party said the pool was “historically large” and significantly bigger than in previous years.

“Many municipalities are under pressure and are struggling to make their finances work,” she said in a ministry press release. “It does not solve all problems, but it takes us a good way forward.”

Lolland receives the largest grant

Rural and outlying municipalities make up most of the list. Lolland Municipality will receive the largest amount, at 223 million kroner. Bornholm Municipality is next with 110 million kroner, followed by Guldborgsund Municipality with 65 million kroner.

Lolland’s financial problems are so severe that its mayor said earlier this summer that the municipality would need to cut spending on “everything that is not legally required”. Its projected deficit was initially estimated at 531 million kroner, but was reduced to 347 million kroner last week.

“People must be able to live a good life throughout Denmark. That requires a good school, safe childcare and proper care in old age. People should be able to count on that, regardless of where they live,” Olsen Dyhr said.

Measured per resident, the island municipality of Læsø receives the most, equivalent to 7,251 kroner per person. Lolland and Langeland follow, with grants equivalent to 5,822 and 5,761 kroner per resident respectively.