For years the Nordic model has stood out as a beacon of universal welfare provision. But if you want evidence of how the global financial crisis has ripped up the political rulebook then look no further than Denmark, the country with the highest tax burden in the world and one that’s long prided itself on a highly developed system of welfare for all.
Its current Social Democrat-led Government has cut welfare payments, raised the retirement age and started to means test college and university students for study grants. And, as of this year, they’ve cut access to child support for richer households.
According to Danish Finance Minister Bjarne Corydon, this reflects ‘a continuing debate of priorities’. And it’s not just taking place in Denmark. The same debate is being echoed all around Europe as the challenge of balancing welfare largesse with political gravity becomes ever harder.
This debate, like many others, has yet to be had publicly in Britain because of the way our politics is haunted by the future.
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