Lars Lokke Rasmussen, will postpone tough negotiations on a broad 10-year financial reform plan.
Denmark's prime minister, Lars Lokke Rasmussen, will postpone tough negotiations on a broad 10-year financial reform plan and instead focus on reaching consensus on the yearly budget, he told local broadcaster DR on Monday.
The ruling liberal party, Venstre, last August presented a comprehensive 10-year plan for Denmark involving tax, property and pensions reforms as well as plans for a new energy subsidy scheme.
But it has been unable to find consensus among political allies, threatening to overthrow the minority government.
"If we don't start on real negotiations ... we won't make it till New Year," he told DR.
"We put a lot on the table... But people have been busy focussing on what they didn't like ... With the time pressure we have, we can't make it across the finish line," Rasmussen told DR.
Rasmussen's minority government has endured headwinds in recent months and might face a general election due to conflicting demands from supporting parties on tax cuts, immigration and welfare scale-backs.
"That is why I now ... propose to settle on a financial budget (for 2017) first," he said.
Rasmussen's one-party government holds 34 of 179 seats in parliament, making it the most tenuous Danish government for decades. It can stay in power only as long as it is supported by the right-wing Danish People's Party, Liberal Alliance and the Conservative Party.
Negotiations on cutting the top rate of income tax by 5 percentage points, a final demand by ally party Liberal Alliance, still looms in the near future and could eventually topple the government if no agreement is reached.
© Thomson Reuters 2016
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)