LA proposes funding defense with benefit cuts

The Liberal Alliance (LA) proposes to finance an increase in defense spending to 3.5% of GDP through substantial welfare reforms. Their plan, which would require DKK 36 billion, includes a DKK 8.6 billion saving from halving the unemployment benefits period to one year and aligning post-graduate benefits with student grants. Additionally, they suggest a DKK 2.2 billion saving by privatizing public broadcaster DR and cutting its government subsidy. The remaining funds would come from the government’s discretionary savings. Simon Kollerup from the ruling Social Democrats criticizes the plan for its social bias, stating it’s unfair to have unemployment benefit receivers carry such costs. Pelle Dragsted from The Red-Green Alliance labels the unemployment benefits cut as ‘rash and ill-considered’. The government recently increased defense spending expectations after officially committing DKK 120 billion until 2033, aiming for three percent of GDP on defense.