COPENHAGEN, Sept 13 (Reuters) - Denmark’s fiscal policy should not be more expansive than what the government has proposed in its draft 2018 budget, central bank governor Lars Rohde told reporters on Wednesday.
When asked if the fiscal policy should be even more contractive, than what has already been proposed, he said that he saw room in the economy for the proposed budget but that a more expansive fiscal policy would not be prudent.
“If we could choose freely we would prefer a fiscal policy that does not add fuel to the fire,” Rohde said.
The draft budget the government offered for 2018 would slow economic growth by 0.05 percentage points. But the Danish People’s Party (DF) - whose cooperation the government needs to pass laws - wants more spending, not less. (Reporting by Teis Jensen)