A shared future - balanced development - Short version

1. Welfare and the environment are interconnected

- the connection between economic growth and negative environmental effects must be decoupled

Economic, environmental, and social development must be protected simultaneously. The welfare society must continue to develop. This means that development must be both economically sund and socially harmonious, taking into account both human health and environmental issues. Economic growth must occur without increasing environmental pressures, in accordance with the United Nations goal of reversing the present trend of loss of natural resources by 2015.


In the last two decades Denmark has successfully achieved a clear stabilisation in economic development.Through reforms to the labour market, taxation, and education it has been possible to achieve increased employment and higher incomes, without increasing the social inequality within Danish society. While the task is not yet complete, Denmark finds itself in a good position to maintain and further develop the welfare society with greater freedom to the individual and to the advantage of all its members. By strengthening the impetus for new initiatives and the desire for success, Denmark can achieve the necessary economic foundation for a welfare society. At the same time, people should have the opportunity of choosing between various private and public solutions within a number of service areas.With its strategy "Determined Growth" (Vækst med vilje), the Danish government has presented a broad strategy for growth which aims towards increasing the number of jobs and higher productivity. Reforms and structural improvements will be undertaken in order to create a good framework for growth.The strategy also emphasises that growth must be environmentally sustainable

Denmark must create an inclusive labour market, where there is room for individuals who cannot fully meet the demands regarding efficiency. Denmark must improve integration of immigrants into Danish society and the workforce. Denmark must also take steps to reduce the number of individuals who receive social benefits and to curb job absenteeism due to illness.The goal of the Danish government's reform programme, "The Common Responsibility" (Det fælles ansvar), is to improve efforts to help the most marginalised members of society, thus giving the weakest groups a better quality of life.

The future holds challenges for Denmark. In the next 30 years the number of elderly will increase, while the percentage of the population, which is actively employed, will steadily decrease.

If Denmark can maintain the current government budget surplus, a large share of its international debt can be repaid in the coming years.The money currently being used on interest payments may then be redirected towards meeting the rising costs of pensions, home-help schemes, care of the elderly, hospitals, etc.

Economic growth and higher employment must be decoupled from increasing pressures on the environment. Denmark must pollute less and use fewer resources. In a number of areas, including the energy sector, it has been possible to decouple the connection between economic growth and increased pollution. In other areas, for example anthropogenic effects on our climate system, significant challenges remain.

These challenges must be met with a range of measures, which will vary depending upon which measure is considered to be the most effective in a specific situation. It is crucial that all contributions provide the most costeffective solution for society - that the greatest environmental benefit is achieved from each contribution. Sustainable development may be promoted through an increased use of market-oriented measures, for example taxes, subsidies and tradable quotas, as well as through information and a broad dialogue. With its report on green market economy, the Danish government will analyse the possibilities of using market-oriented measures to promote a better environment. Research into causal relationships and into new environmental and societal problems is important as it enables government leaders to make sound decisions and legislate preventative measures as early as possible, thereby achieving sustainable development. At the European Union (EU) summit in Barcelona it was decided that the total expenditure on research and development in the EU should increase to a level of about three per cent of the gross national product (GNP) by 2010. Indicators are valuable tools to illustrate whether society is making progress towards achieving sustainable development.