The Danish government and municipalities have reached an agreement on the 2026 economy, prioritizing investments in daycare institutions, primary schools, and cultural and leisure facilities. The agreement, finalized on Tuesday, aims to improve facilities for schoolchildren and children in daycare, focusing on more inviting toilets, better outdoor areas, and a cleaner indoor climate.

The service framework has been increased by DKK 3.2 billion, while the municipalities must simultaneously reduce administration by DKK 250 million. This agreement surpasses the previous year’s, which was already considered the best in 15 years.

Investments in primary schools are estimated to be approximately DKK 5 billion. The government and municipalities have jointly decided on these priorities.

The chairman of the Association of Municipalities in Denmark (KL), Martin Damm, highlighted the need to invest in welfare to ensure its continued relevance, following a period of tight budgets. The service framework, which has been raised annually since 2018, sets a limit on the total amount municipalities can spend on service expenses.

The service ceiling in the municipalities’ economy for the coming year has been set at DKK 336.8 billion. These funds are allocated to various municipal services, including the operation of schools, elderly centers, and daycare institutions.