Denmark proposes cuts to student grants and pensions to boost defence

Denmark has presented its new budget proposal for the coming years.

The government plans to cut student grants and early pensions.

These cuts will help fund higher spending on national defence.

Students who live with their parents will lose grant eligibility.

The government wants defence spending to reach 3.5 percent of GDP by 2030.

Finance Minister Peter Hummelgaard stated that tough choices were necessary.

Tax cuts are also part of the proposed budget plan.

The plan includes over 10 billion Danish kroner in tax reductions.

The middle tax bracket and top-top tax bracket will be abolished.

Corporation tax rate will also be reduced under the new proposal.

Primary and lower-secondary schools will receive 1.2 billion Danish kroner in 2027.

A new levy will also apply to cruise ships.

Rules for early pensions due to ill health will become stricter.

Economy Minister Pia Olsen Dyhr defended the budget compromise as necessary.

The government will now negotiate with other parties in parliament.

A reserve of 500 million Danish kroner per year is available for negotiations.

This news report is based on coverage from The Local.