The Danish government and municipalities have reached an agreement on the 2026 economy, increasing the service framework by DKK 3.2 billion while requiring municipalities to reduce administration by DKK 250 million. This agreement aims to improve welfare services and promote green energy initiatives.

Investments will be directed towards enhancing daycare institutions, primary schools, and cultural and leisure facilities. Specifically, around DKK 5 billion will be allocated to primary school improvements, including DKK 908 million for creating better specialist rooms.

The construction framework for municipalities will be increased to DKK 22.3 billion, a DKK 2 billion rise compared to the previous year. This funding will support investments in daycare facilities, schools, and nursing homes. Additionally, approximately DKK 700 million is earmarked for expanding municipal housing capacity.

A significant portion of the agreement focuses on promoting renewable energy, with DKK 200 million allocated annually until 2035 to support renewable energy projects on land. This initiative aims to encourage the development of solar and wind energy sources within municipalities.

While the agreement is praised by figures like Martin Damm, chairman of the Association of Municipalities in Denmark, who called it “better than the one we entered into last year,” concerns have been raised by the Confederation of Danish Industry (DI). DI’s vice director, Morten Granzau Nielsen, expressed worry about the growth in public consumption, suggesting a more subdued increase in municipal finances would have been preferable, considering the need for defense spending.