Insurance and Pension Denmark (I&P Denmark) has set out 25 proposals for Denmark’s 2027 budget.

The proposals are grouped into three areas: climate adaptation and the green transition, welfare and competitiveness, and security and preparedness.

It said the proposals are in response to the major changes the country faces from climate change, demographic pressures and increased global uncertainty. They are intended to strengthen Denmark’s ability to meet future challenges while supporting growth and competitiveness.

I&P Denmark CEO Kent Damsgaard said that while Denmark is in a strong position today, it could not take its strengths for granted.

“The world around us is changing rapidly, and this requires us to make decisions now that will make us resilient tomorrow,” he said.

“We are pointing to very concrete solutions that can both strengthen security for Danes in their everyday lives and contribute to growth, the green transition and a more competitive Denmark.”

Damsgaard said the insurance and pensions sector plays a central role in the economy by managing risks and providing long-term capital, a role he said was becoming increasingly important amid greater uncertainty.

“The insurance and pensions sector is an important part of Denmark’s economic infrastructure. We help create security for individuals, but we also help finance the solutions of the future,” he said.

Among the measures proposed are a national climate adaptation plan through to 2035, stronger support for people returning to work after illness, and changes to pension saving and insurance taxation.

One of the key pension proposals calls for equal treatment of pension savers, with I&P Denmark warning that more than one million Danes with average-interest pension schemes could face an unintended tax impact over the coming years.

The issue arises because some savers do not receive interest on negative PAL tax owed to them while they wait for the money to be paid out. I&P Denmark said this effectively results in a higher tax on investment returns.

I&P Denmark therefore proposed that, in certain cases, negative PAL tax should accrue interest for up to five years, until the money is paid out to pension savers. The measure would, it said, ensure fairer and more equal conditions for pension savers.

I&P Denmark also called for the 2027 budget to place greater emphasis on investments that strengthen Denmark’s ability to address future economic, social and security challenges.

The full list of proposals is set out below:

Climate adaptation and green transition

Proposal 1: National climate adaptation plan through to 2035
Proposal 2: Extend the climate protection fund
Proposal 3: Establish a climate protection task force
Proposal 4: Expand the demolition fund to include homes affected by climate change
Proposal 5: Establish a knowledge centre for sustainable homes
Proposal 6: Strengthen efforts to promote green home renovations
Proposal 7: Extend the lifespan of electric vehicles

Welfare and competitiveness

Proposal 8: Help more Danes move from illness into work
Proposal 9: Keep vulnerable young people in the labour market
Proposal 10: Focus on everyday life with a mental health condition
Proposal 11: Increase the incentive to save for retirement
Proposal 12: Equal treatment for all pension savers
Proposal 13: Abolish the special tax
Proposal 14: Extend the “MyBusiness – easier reporting to the public sector” project
Proposal 15: OPP task force to promote public-private cooperation to climate-proof and future-proof Denmark
Proposal 16: Remove double taxation on Danes’ investments in Europe
Proposal 17: Improve digital supply security
Proposal 18: From digital uncertainty to responsible AI growth

Security and preparedness

Proposal 19: Abolish the tax on motor liability insurance
Proposal 20: Abolish the tax on non-life insurance
Proposal 21: Step up efforts to combat bicycle theft
Proposal 22: Fewer fires in the future
Proposal 23: Additional tax deduction for part-time employees in emergency services
Proposal 24: Subsidies for replacing asbestos in homes as part of energy renovations
Proposal 25: Funding for the voluntary work of search-and-rescue dog handlers

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