To stop inflation, the government needs to reduce public spending by 25 billion DKK next year or to increase taxes on the population to reduce consumption, according to the director of the Danish National Bank. Otherwise, the inflation will further increase by 4,3% next year, the housing prices will fall 5,6% and the economy will slow down.
- The government is willing to reduce public spending by 2,5 billion DKK only. They are not willing to entertain any further austerity. Following the advice of the National Bank could lead to a severe increase in unemployment.
