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Introduction

 
Denmark is a constitutional monarchy and a parliamentary democracy. The Danish Constitution (Grundlov), adopted in 1849, is one of the oldest Constitutions in the world. Inspired by Montesquieu's division of powers, it replaced absolute monarchy with constitutional monarchy. Its particularity resides in the fact that it has never been amended but rewritten every time an amendment was adopted. The current version in use is the one of 1953. The Parliament (Folketing) is unicameral and has a multi-party structure. The Head of State is the Monarch and the Government is led by a Prime Minister.

The country is a unitary State organised on a decentralised basis. It has three levels of governance: central, regional and municipal. Prior to 2007, the Danish territorial organisation consisted of the State, the Counties and the Municipalities. A major reform, the so-called 'Structural Reform', was agreed in 2004 and resulted in the dissolution of the Counties, the creation of five regions (regioner: Nordjylland, Midtjylland, Syddanmark, Sjælland and Hovedstaden) and the reduction of the municipalities (kommuner) from 271 to 98 in 2007. It also modified the division of powers among the different levels of governance. Only municipalities are considered local authorities.

Besides, Denmark has two special autonomous regions: the Faroe Islands and Greenland which are not members of the European Union (EU). Greenland is recognised as having the Overseas Countries and Territories status at the EU level. In addition to the overseas agreement, Greenland has a number of agreements with the EU such as the Fisheries Agreement.

Local self-government is enshrined in the Constitution (section 82), albeit there is no indication of how it should be organised. Local and regional authorities are responsible for matters of their interest which are not expressly conferred to the State. The regions and the municipalities do not hold legislative powers and must act within the confines of the applicable law. There is no hierarchy between the regions and the municipalities.

The municipalities depend on the Local Government Act and are under the responsibility of the local council with the mayor at its head. Each municipality decides upon its management structure and the organisation of the different departments and units. The regions depend on the Regional Government Act. Each of the five regions is governed by a regional council with the chairperson at its head and isrequired to establish a business committee and a contact committee. Similarly to the municipalities, the regions decide upon their own structure and organisation. 

Supervision over the local and regional authorities is performed by the State Administration monitored by the Ministry of Social Affairs and the Interior. Both entities are elected for four years.

Greenland and the Faroe Islands have legislative powers. They hold competence in all matters except foreign and security policy, monetary systems, police and justice, and constitutional matters, which are regulated as a part of Denmark. Furthermore, there is an extensive educational cooperation between Denmark and Greenland and the Faroe Islands, as the latter do not have any institutions of higher education. Greenland and the Faroe Islands are represented in the Danish Parliament.

In 2010, sub-national expenditure represented 71% of the total public expenditure: 49% for the Municipalities and 22% for the Regions, reflecting a high level of decentralisation. The Municipalities' revenue was composed in 53% of income taxation, 15% of block grants, 13% of reimbursements, 8% of user payments, 6% of land and property tax and 5% of others[1].

In 2015, subnational governments spent 56.3% of their budget on social protection (19.7% of GDP), 24.2% on health (8.4% of GDP), 8.9% on education (3.1% of GDP), 3.8% on economic affairs, 3.5% on other, and 3.3% on general services. In 2016, subnational government expenditure amounted to about 15,000 Euro per capita compared to an OECD average of about 6,000 Euros. Subnational government expenditure accounted for 34.8% of GDP and 65% of public expenditure in 2016.

The regions are not entitled to levy taxes; they are financed by way of State and municipal contributions[2].

1.1.   Central level

The central government has general legislative powers in the following areas of national sovereignty: police, defence, administration of justice, foreign affairs and development aid.

Moreover, it is responsible for:

• Higher education, secondary education, vocational training and research;
• Sick pay, child benefits and elderly pensions;
• Unemployment insurance and labour inspection;
• Certain cultural activities;
• Trade and industry subsidies;
• Citizen service regarding taxation and collection in cooperation with State tax centres;
• Food control, and
• Administration at national level, over and above administrative responsibilities exercised at regional and local level.

1.2.   Regional level​

Regions have responsibilities in the areas of:

• Public health and healthcare;
• Hospital provision;
• Health insurance;
• Mental health treatment;
• Social services and special education;
• Regional development;
• Business promotion
• Environment and nature;
• Soil pollution;
• Culture;
• Employment;
• Transport.

A major reform involving the regions' role in healthcare was announced early 2019 for the next year, but has been postponed following the election of a new government in June 2019.

1.3.   Local level

Municipalities are responsible for:

• Social services: total regulatory, supply, and financing responsibility
• Unemployed service (local job centres) and labour market involvement;
• Childcare;
• Primary education, including special education for adults;
• Care for the elderly;
• Social psychiatry;
• Healthcare preventive treatment, care and rehabilitation, home care and treatment of alcohol and drug abuse, dental care
• Integration and language education for refugees and immigrants;
• Environmental protection and waste management, water and preparation of local plans;
• Industrial and economic development;
• Rural development;
• Local business service and local tourism;
• Local roads;
• Culture and sports:
• Utilities and rescue services.

[1] Local Government Denmark, PowerPoint presentation on 'Welcome to Local Government Denmark', Seminar 21 March 2012.

[2] A collective work of Dexia Crédit Local Research Department, Sub-national governments in the European Union – Organisation, responsibilities and finance, Dexia Ed., La Défense, 2008, pp. 236-238.