Denmark: Globalisation and the Welfare State
9-709-015
REV: OCTOBER 14, 2010
ARTHUR A. DAEMMRICH BENJAMIN KRAMARZ
De enmark Globa k: alizatio and the We on elfare S State
On April 5, 200 Lars Løkk Rasmussen was named prime mini n 09, ke n d ister of Denm mark followin the ng appoi intment of An nders Fogh R Rasmussen, p prime ministe since 2001, as secretary general of N er NATO. Thoug not related Lars Løkke had worked in Anders Fo gh d, e ogh’s governm ment, first as interior and h health minis ster and then as minister of finance. A he formed a new gove As d ernment, Lars Løkke soug to s ght develop a set of long-term economic and social plans that would keep Denma internatio l ark onally competitive, despite its large pu ublic sector an costly welf nd fare spending However, s g. short-term rea action to the worldwide economic do e ownturn dom minated policy discussions. A long-stan y . nding debate about joinin the Eurozo was given new saliency when the European Ce ng one n entral Bank lowered its ra on ate “refin nancing opera ations,” which provided liq h quidity to the Eurozone, ju days befor Lars Løkke took e ust re e office. Denmark was a member of the Europ w r pean Union but had retain its own cu ned urrency, the k krone. Likew wise, plans for rmulated a year ago to ex xpand the Dan nish workforc by looseni labor rule and ce ing es reduc cing welfare benefits had b b become unpop pular as unem mployment in ncreased. An nders Fogh Rasmussen had left a mixed legacy. Denm d d mark benefite from a balanced govern ed nment budge little publi debt, and lo unemploy et, ic ow yment. But its internationa reputation had suffered from s al d contro oversies over immigration. As the lo r ongest ruling Liberal Part (Venstre) prime minist in g ty ter mode Danish hi ern istory, Ander Fogh had led a centerrs -right coalitio governme that developed on ent strict immigration policies. The policies m ese made it relativ vely easy for f foreigners to work in Denm mark, but d difficult for th hem to stay in the
REV: OCTOBER 14, 2010
ARTHUR A. DAEMMRICH BENJAMIN KRAMARZ
De enmark Globa k: alizatio and the We on elfare S State
On April 5, 200 Lars Løkk Rasmussen was named prime mini n 09, ke n d ister of Denm mark followin the ng appoi intment of An nders Fogh R Rasmussen, p prime ministe since 2001, as secretary general of N er NATO. Thoug not related Lars Løkke had worked in Anders Fo gh d, e ogh’s governm ment, first as interior and h health minis ster and then as minister of finance. A he formed a new gove As d ernment, Lars Løkke soug to s ght develop a set of long-term economic and social plans that would keep Denma internatio l ark onally competitive, despite its large pu ublic sector an costly welf nd fare spending However, s g. short-term rea action to the worldwide economic do e ownturn dom minated policy discussions. A long-stan y . nding debate about joinin the Eurozo was given new saliency when the European Ce ng one n entral Bank lowered its ra on ate “refin nancing opera ations,” which provided liq h quidity to the Eurozone, ju days befor Lars Løkke took e ust re e office. Denmark was a member of the Europ w r pean Union but had retain its own cu ned urrency, the k krone. Likew wise, plans for rmulated a year ago to ex xpand the Dan nish workforc by looseni labor rule and ce ing es reduc cing welfare benefits had b b become unpop pular as unem mployment in ncreased. An nders Fogh Rasmussen had left a mixed legacy. Denm d d mark benefite from a balanced govern ed nment budge little publi debt, and lo unemploy et, ic ow yment. But its internationa reputation had suffered from s al d contro oversies over immigration. As the lo r ongest ruling Liberal Part (Venstre) prime minist in g ty ter mode Danish hi ern istory, Ander Fogh had led a centerrs -right coalitio governme that developed on ent strict immigration policies. The policies m ese made it relativ vely easy for f foreigners to work in Denm mark, but d difficult for th hem to stay in the