According to TV2, soaring food and beverage prices in Denmark have prompted the government to investigate the cause, as Prime Minister Mette Frederiksen stated in an interview with the Danish newspaper Politiken. Prices in Denmark are 19% higher than the average price across all 27 EU member states, according to TV2. She added, "I have asked our economic ministers to develop a clear plan: what does the world have to do with Denmark specifically?" Frederiksen also told the source that tax cuts may be considered in the upcoming budget bill: "We will present the budget bill soon, and you will be able to see some of the initiatives we will be undertaking.".
An economist says tax cuts will not lead to lower prices.
TV2's business analyst, Ole Kron, reported that the government will allocate around 1 billion kroner to the next budget bill, which will be used to reduce taxes on expensive coffee and chocolate products.
He explained that completely removing taxes on these goods would contribute to lower prices, but it wouldn't make a huge difference: “The tax on a chocolate bar is 1 kroner and 30 euros, so removing this tax would be a contribution, but it's not something that would cause prices to fall. It's somewhat similar for coffee, which currently costs between 7 and 8 kroner per kilo. You can raise the price, but you can't slow down these increases,” according to the source.
Opposition party leader: There's plenty of money in the treasury; Denmark achieved a tax surplus exceeding 100 billion kroner last year.
According to TV2, Morten Messersmeet, leader of the Danish People's Party, criticized Prime Minister Mette Frederiksen, telling the website: “It's great that Mette Frederiksen wants to look into rising prices. But unfortunately, that won't solve the problem. We need a massive tax cut and a reduction in VAT on food. Then Danes won't have to flee south to the border or to Sweden to buy groceries.” The politician believes that the “crazy climate tax,” in particular, contributes to rising prices: “It's not enough for the Prime Minister to say she'll look into something; action must be taken,” according to TV2.
In addition, Morten Messerschmitt pointed out that Denmark had a tax surplus of over 100 billion kroner last year, and therefore there would still be “plenty of money in the treasury” if taxes were cut significantly, according to him.
Morten Messerschmitt likened the current situation to a pre-closure panic, saying, "For three years, we've seen a government do nothing when consumers are cheated. Why are they doing this now, especially since the constitution mandates parliamentary elections in just over a year?" The leader of the Danish People's Party added.
