As suggested on Saturday, the government today announced an agreement with the Danish People’s Party and the Social Liberal Party about a new system for redistributing local government taxes and subsidies.
The text of the agreement is available as a pdf-document on the homepage of the Ministry of the Interior.
Just giving a brief overview of the reform is difficult but the system should give a higher degree of redistribution from the Metropolitan area to the rest of the country while the internal redistribution between local governments in the Metropolitan area will be limited.
It is worth noting that the agreement is “oversized” in political science terms: The votes of the Social Liberal Party are strictly speaking not needed to pass the accompanying legislation.
On the other hand, the Social Democrats were left out of the negotiations at an earlier stage. Local governments in the Metropolitan area led by the Social Democrats or the Conservative party are supposed to be the losers in the agreement.