EU Council recommends Denmark on fiscal and structural policies

The Council of the European Union has issued a recommendation on the economic, social, employment, structural and budgetary policies of Denmark for 2026 and 2027.

• The recommendation covers fiscal policy, defence spending, energy prices, electrification, skills, housing, and circular economy reforms, and urges Denmark to continue adhering to previously recommended net expenditure growth limits while using the national escape clause.
• It also calls for continued implementation of the Recovery and Resilience Facility and cohesion policy programmes, faster grid upgrades, support for SMEs, and measures to address agricultural emissions and waste management.
• The document cites Denmark’s 2025 GDP growth of 2.9%, HICP inflation of 1.8%, and notes that grid capacity is constrained by demand from data centers, Power-to-X projects, and battery energy storage systems.