COPENHAGEN May 3 Denmark's right-leaning
minority government presented a broad housing tax deal with
opposition parties on Wednesday, ending months of policy
deadlock and paving the way for talks about labour market
reforms and a long-term plan for the economy.
The compromise, which was agreed during negotiations late on
Tuesday, has the backing of key right-wing government ally the
Danish People's Party, as well as the centre-left Social
Democrats and Social-Liberals.
The deal aims to give tax relief to six out of 10 home
owners, the government said, while those living in the most
expensive houses, mostly in Copenhagen, could see their housing
taxes go up.
Danish homeowners pay around 42 billion Danish crowns
($6.16 billion) annually in two types of housing taxes under the
current system, which has long been criticized for being opaque
and arbitrary and for increasing the risk of price bubbles.
"With the deal, a correlation between housing taxes and
house values will be restored from 2022. It will at that time
have a stabilising effect on housing prices and thus the
economy," central bank governor Lars Rohde said.
The government, which holds 53 of 179 seats in parliament,
aims to gain support for reforms to expand the workforce to
avoid that a shortage of workers in some areas dampens economic
($1 = 6.8148 Danish crowns)
(Reporting by Erik Matzen and Teis Jensen, editing by Terje