Denmark: Model Economy, Welfare State and Stability

Denmark as a European country can be characterized as a model state.

Regarding immigration, the rule is: Denmark should not accept more immigrants than it can integrate, because it is absolutely essential that the country has the capacity and resources to cover them in total over time. Acquiring nationality is a very difficult way. To apply, one must, for example, have lived in the country for at least eight years. The slightest exit from the territory, even for a day, resets the previous period of stay. Another rule: a single conviction can lead to the deportation of immigrants in due form. State medical aid intervenes only after six months of presence and their property can be seized to pay the costs of the process.

Competitiveness indicators

Another rule is: the welfare state financed by all citizens, with free and equal access to health, education and social services, is not compatible with an open immigration policy, which leads to very large integration problems and threatens the balance and the sustainability of the Danish social model.

The only valid criteria are the following two:

  1. Can this work?
  2. How much does it cost?

Denmark’s economic success can be largely explained by its famous “flexicurity”, a mixture of flexibility in the labor market and high guarantees in case of unemployment.

But the minimum wage is not guaranteed. Strongly, unions negotiate the minimum wage directly with employers on an industry-by-industry basis. If there was a minimum wage, the EU would intervene drastically.

Below are some indicators of how the Danish economy is doing in relation to some EU states.

  • Public debt in % of GDP (Q1 2023)

Denmark 29.4, Bulgaria 22.5, Ireland 43.5, Germany 65.9, Croatia 69.5, Hungary 74.9, Austria 80.6, Cyprus 84.0, Belgium 107.4, France 112.4, Spain 112.8, Portugal 113.8, Italy 143.5, Greece 168.3.

  • GDP per capita, 2022 (euro)

Denmark 48000, Luxembourg 92000, Ireland 82400, Netherlands 45600, Austria 44100, Belgium 42500, Sweden 41800, Germany 41100, Finland 38400, France 35700, Italy 33700, Spain 30000, Poland 27900, Portugal 27200, Romania 27200, Greece 23900, Bulgaria 20700.

Source: toute l’Europe

  • Unemployment rate, in %, 2022

Eurostat estimates that last May 2023, 12.9 million people were unemployed in the EU, i.e. 5.9% of the working population.

Denmark 4.9, Poland 2.7, Germany 3.0, Ireland 3.8, Bulgaria 3.9, Austria 4.6, Cyprus 4.9, Romania 5.5, Portugal 6.4, Croatia 6.5, France 7.0, Italy 7.6, Greece 10.8, Spain 12.7.

The Danish model of economy and society is characterized by flexibility, competitiveness and stability. But there is also a paradox: there is a shortage of human resources at the moment, but the immigration policy remains very strict. However, this immigration should be part of the solution to ease the tensions in the labor market, which is among the strongest in the countries of Europe.

About the author

The Liberal Globe is an independent online magazine that provides carefully selected varieties of stories. Our authoritative insight opinions, analyses, researches are reflected in the sections which are both thematic and geographical. We do not attach ourselves to any political party. Our political agenda is liberal in the classical sense. We continue to advocate bold policies in favour of individual freedoms, even if that means we must oppose the will and the majority view, even if these positions that we express may be unpleasant and unbearable for the majority.

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