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Danish PM unveils plans for welfare push, defiance of Trump

Published by Global Banking & Finance Review

Posted on June 2, 2026

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· Last updated: June 2, 2026

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Danish PM unveils plans for welfare push, defiance of Trump

Denmark's New Government: Policy Priorities and International Stance

By Stine Jacobsen and Soren Jeppesen

Government Formation and Political Context

COPENHAGEN, June 2 (Reuters) - Danish Prime Minister Mette Frederiksen's new centre-left government will resist U.S. pressure over the future of Greenland, tackle domestic inflation and expand the welfare state, according to a policy document published on Tuesday.

After more than two months of negotiations, Frederiksen, 48, on Monday announced an agreement to form her third consecutive government, which could make her Denmark's longest-serving prime minister since World War Two.

Immediate Policy Agenda

The immediate to-do ​list includes ongoing diplomatic talks over ​Greenland, which U.S. President Donald Trump ⁠has threatened to annex, and a rapid build-up of Denmark's military as security in Europe deteriorates amid Russia's war in Ukraine.

"The government will stand firm on the kingdom's sovereignty, territorial integrity and right to self-determination," the policy document said.

Greenland and Sovereignty Issues

The future of the Kingdom of Denmark, consisting of Greenland, the Faroe Islands and mainland Denmark, is up to the three nations to decide for themselves, the government said, adding that it remained unwavering in its support for Ukraine.

Frederiksen, ahead of the policy presentation, also met with the two Greenlandic members of parliament who said they backed the government.

Coalition Partners and Parliamentary Support

In addition ​to Frederiksen's Social Democrats, the new government will consist of ​the Social ⁠Liberals, the Left Greens and the centrist Moderates, relying primarily on the far-left Red-Green Alliance for a parliamentary majority, though it can also seek backing from other parties on ⁠individual votes.

Domestic Policy Initiatives

Cost-of-Living Crisis Response

COST-OF-LIVING CRISIS

To secure support, the incoming government agreed to free dental care for Danes within 10 years, free public transport for everyone under the age of 22 and zero value-added tax (VAT) on fruit and vegetables, according to the Red-Green Alliance.

The plan addresses a cost-of-living crisis that haunted Frederiksen throughout the election campaign, where the Social Democrats suffered their worst result in over a century.

The proposals did not include a wealth tax, which Frederiksen had proposed during the election.

Political Reactions and Analysis

"It's pretty crazy to do a hat-trick as prime minister ... There must be some left-wing heads of government in Europe looking at this and thinking, maybe we should listen to her about how to negotiate and do parliamentary work," said Andreas Thyrring, partner at Ulveman & Borsting, a public affairs advisory firm.

Immigration and Deportation Policies

Frederiksen told a press conference later on Tuesday that her new government would press on with her previous cabinet's work towards allowing the deportation of more foreign national offenders, and would continue working to establish deportation centres outside Europe.

Denmark's approach to immigration, one of the toughest in Europe, has been criticized by some rights groups but is also closely watched by other governments. 

(Reporting by Stine Jacobsen and Soren Jeppesen in Copenhagen, editing by Gareth Jones)

Key Takeaways

  • Frederiksen secures a third consecutive term by leading a four‑party, centre‑left coalition including the Social Democrats, Social Liberals, Left Greens, and Moderates, relying on support from the Red‑Green Alliance for a parliamentary majority (investing.com).
  • The new government's priorities include resisting U.S. pressure over Greenland, conducting diplomatic talks and reinforcing military presence amid security concerns related to Russia’s war in Ukraine (investing.com).
  • Domestically, the government aims to address the cost‑of‑living crisis by implementing free dental care within ten years, free public transport for under‑22s, and eliminating VAT on fruit and vegetables (investing.com).

References

Frequently Asked Questions

What welfare measures has Denmark's new government proposed?
The new government proposed free dental care within 10 years, free public transport for those under 22, and zero VAT on fruit and vegetables.
How is Denmark responding to U.S. pressure over Greenland?
Denmark's government has stated it will stand firm on the kingdom's sovereignty and reject external interference in Greenland's future.
Which parties form Denmark's new government?
The coalition includes the Social Democrats, Social Liberals, Left Greens, and Moderates, with parliamentary support from the Red-Green Alliance.
Is Denmark introducing a wealth tax in this policy package?
No, the new proposals do not include a wealth tax, though one was previously proposed during the election campaign.
How is Denmark addressing the cost-of-living crisis?
The government aims to ease the crisis by expanding welfare programs and introducing specific financial relief measures.

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