Budget negotiations concluded early Thursday morning, but government and Danish People’s Party hospital dispute is still unresolved

An agreement for the 2010 budget fell into place early Thursday morning, after what many politicians and media say was a ridiculous hold-up from the Danish People’s Party (DF).

The financial crisis’ effects are clear in the budget, which will leave a 90 billion kroner deficit for the state next year.

But talks were dragged out into the wee hours of the morning by DF’s dispute with the government over the placement of a ‘super-hospital’ in mid-Jutland. A 16 kilometre difference in the area outside the city of Herning has been the sticking point – one that remained unresolved despite the budget agreement.

Finance Minister Claus Hjort Frederiksen said he was satisfied with the final agreement.

"We've reached an agreement with the Danish People's Party that provides more social welfare, increases efforts to fight gangs, pushes public investments forward, extends income tax credits and labour market contributions, and implements loan schemes for the city councils,’ Frederiksen said.

A big chunk of the budget will go toward a new stimulus package, sinking 5 billion kroner into renovations for roads, energy production and health care.

With regard to the super-hospital, Prime Minister Lars Lokke Rasmussen reiterated Tuesday the government's position that it would be located in Gødstrup just outside Herning. DF has battled for it to be place in the town of Aulum, which lies closer to the city of Holsterbro.

The parties have agreed to send the issue to the Mid-Jutland Region, resulting in a final decision on the matter being postponed until June 2010.

But DF managed to fulfil its promise from party leader Pia Kjærsgaard to Mid-Jutland residents to get more money for health care, negotiating an increase in the regional funding pool from 250 million kroner to 500 million.

Kjaersgaard highlighted the included initiative that set aside two loan pools totalling 3 billion kroner to the country's city councils.

’It was extremely important that we got a wide range of improvements for daycare centres, schools, and nursing homes. All the buildings and roads that need renovation can now be upgraded,’ she said.

Another important aspect of the new budget was parties’ agreement to negotiate a third national Cancer Plan, which would focus on development of treatments and improving primary care, including rehabilitation of the many patients who are living with cancer or its after-effects.

Other allocations in the new budget are as follows:
Investments in primary schools, daycare centres and athletic facilities for children and the elderly: 4 billion kr.
Investments for future hospitals: 1.5 billion kr.
Investments in green transport: 2.775 billion kr.
Technological improvements for university laboratories (toward globalisation): 1 billion kr.
More resources for greater activity in health care: 1.779 billion kr.
A ‘green growth’ vision for nature, environment, climate and agriculture: 550 million kr.
Globalisation Pool: 1.184 billion kr.
Assistance for socially vulnerable groups: 936 million kr.
Prevention programmes for physical and mental health deterioration: 410 million kr.
New defence agreement: 700 million kr.