The Danish government and municipalities have reached an agreement on the economy for 2026, which will result in improvements for schoolchildren and children in daycare institutions. These improvements include more inviting toilets, better outdoor areas, and a cleaner indoor climate.

The agreement increases the service framework by DKK 3.2 billion, while requiring municipalities to reduce administration by DKK 250 million. The service framework is a ceiling on how much money municipalities can collectively spend on service expenses, such as running schools, elderly centers, and day care institutions. The agreed service ceiling for the municipalities’ economy next year is DKK 336.8 billion.

Investments in primary schools will amount to around DKK 5 billion. Additionally, the financial agreement allocates DKK 200 million annually until 2035 to promote renewable energy on land.

Martin Damm, chairman of the Association of Municipalities in Denmark (KL), stated that this agreement is better than the previous year’s, which he considered the best in 15 years. He emphasized the need to invest in welfare to ensure its continued relevance after years of tight budgets.

Finance Minister Nicolai Wammen highlighted the government’s wish to take good care of the welfare society through this financial agreement with the municipalities. The agreement prioritizes investments in day care institutions, primary schools, and cultural and leisure facilities.

Green Power Denmark’s political director, Thomas Aarestrup Jepsen, welcomed the state’s support for municipalities in their green transition efforts, creating space for solar cells and wind turbines.

However, the Confederation of Danish Industry (DI) expressed concerns about the investments in welfare and the public sector. DI’s vice director, Morten Granzau Nielsen, pointed out that the expected growth in public consumption is among the highest in decades, suggesting a preference for a more subdued lifting of the municipalities’ economy in 2026, especially considering the need for large defense expenditures.