Weekly economics overview
Transport deductions for 2025 remain at the 2024 level. The rate is 2.23 DKK per km between 25 and 120 km of commuting distance. Over 120 km is 1.12 DKK per km. The tax-free allowance that is paid to employees who drive their own car for business purposes will be increased from 3.79 DKK per km to 3.81 DKK per km.
For two years, a cartel of electricity companies has colluded to keep electricity prices artificially high. The primary players include Effekthandel and eight power plants—Silkeborg, Vildbjerg, Feldborg, Haderup, Ørnhøj-Grønbjerg, among others—along with 41 smaller entities. This conspiracy drove prices up in 2020, skyrocketing from 5 DKK per megawatt to 68 DKK per megawatt.
A one-stop shop for green production companies is being introduced by the Ministry of Business to streamline the process of establishing production facilities for components in industries like wind energy, CO2 capture and storage, and hydrogen. Currently, setting up such facilities can take up to three years and requires dealing with up to 20 different authorities. The new initiative aims to cut this timeframe to a maximum of 18 months. Additionally, the government plans to create five industrial parks designed to make it easier for production companies to establish operations.
Danish companies are increasingly targeted by cyberattacks, prompting a shift in their cybersecurity strategies. The Dansk Erhverv reports a significant rise in cyber incidents, with 68% of companies experiencing attacks in the past year. In response, businesses are investing more in cybersecurity measures and employee training to mitigate risks.
A private investor has acquired a 51% stake in Aarhus Airport for 120 million DKK, while the remaining 49% of shares are retained by Aarhus, Norddjurs, and Syddjurs municipalities. Previously, Aarhus Municipality held a 90% majority. Last year, the airport faced a deficit of 83 million DKK and was at risk of running out of cash this year. The new ownership structure aims to revitalize the airport, with plans to boost annual passenger numbers from 449,000 to 1.5 million.
The world’s wealthiest nations must assist poorer countries in financing the green transition and adapting to an increasingly severe climate. While there is consensus on this need, a draft agreement has finally been released after two weeks of negotiations, which proposes a fund of $250 billion. However, this amount falls significantly short of the estimated $1.3 trillion required annually by developing countries.
Focus
What is your tax money being spent on in 2025? Although it will be formally approved in the Parliament in early December, there is now a majority agreement for the financial law 2025. What are the main points?
- As we predicted last week, the home improvement tax deduction is back. This time for climate-proofing your house. Improvements that will improve energy efficiency and prepare your home for extreme weather conditions will be deductible by up to 8,600 DKK per year.
- The services tax deduction is increased from 11,900 DKK per year to 17,500 DKK per year and expanded to include repair services of white goods (appliances).
- As an experiment, several public schools will get free meals. 20,000 “folkeskole” students will receive free lunches from the summer of 2025. If the experiment is successful, it is planned to expand the initiative to the whole country.
- Parents of children born prematurely will be able to extend their maternity allowance to up to 12 months.
- When a parent loses a child, they will be allowed a longer bereavement period.
- The waiting time to be diagnosed with dementia will be reduced.
- People who have been subject to violence or robbery will have access to psychologists free of charge.
