Danish Prime Minister Lars Loekke Rasmussen announced on Wednesday a public spending freeze aimed at reducing Denmark's deficit and bringing it into line with the EU's monetary convergence criteria. Presenting a new economic recovery plan at a press conference in Copenhagen, Rasmussen called on Danes to "be satisfied over the next 730 days with the same level of social benefits as today."
In February, the head of Denmark's centre-right governing coalition had announced measures to cut 24 billion kroner (3.2 billion euros, 3.9 billion dollars) in costs by 2013. This was an attempt to bring the country's public deficit to below 3.0 percent of its gross domestic product, as directed by the European Union - down from 5.5 percent this year.
EU member Denmark is not part of the eurozone but is linked to the zone through a tight monetary co-operation and follows the same criteria as countries with the single currency. According to the plan presented on Wednesday, the amounts allocated to unemployment benefits, student scholarships, pension assistance, aid for housing and other benefits would remain frozen at 2010 levels until the end of 2012.
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