Denmark: a new tax on banks to finance early retirements

On 10 October, Denmark’s Social Democratic government reached an agreement with three other political parties (the Red-Green Alliance, the Socialist Party, and the right-wing Danish People's Party), thereby guaranteeing sufficient parliamentary support in order to pass its early retirement reform project (c.f. article No. 12090). Early retirement reform was one of the main 2019 electoral promises of the Social Democratic Prime Minister Mette Frederiksen. It will cost DKK 3.5 billion (€ 470 million) and will be partly financed by a new tax on financial institutions, i.e. a "social contribution" from the banks.
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“The deal is equitable and fairly financed,” stated Finance Minister Morten Bødskov, who believes the financial sector “should contribute more to the community” after making “billions in profits” in recent years.

In November the executive will submit the bill to Parliament so that it can take effect in 2022. In 2011, the government approved a gradual increase in the retirement age from the current 66 out to 68 by 2030. “When we ask Danes to work longer and longer, we also have to take into accou

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