Danish PM loses coalition partner in energy row
Energy stake sale to Goldman Sachs prompts latest political upheaval for Thorning-Schmidt
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Danish prime minister Helle Thorning-Schmidt adresses the media on January 30th, 2014 after the Socialist People’s Party quit the government.
Photograph: Keld Navntoft/AFP/Getty Images//Derek Scally
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Danish prime minister Helle Thorning-Schmidt adresses the media on January 30th, 2014 after the Socialist People’s Party quit the government.
Photograph: Keld Navntoft/AFP/Getty Images//Derek Scally
Danish Social Democrat prime minister Helle Thorning-Schmidt has vowed
to remain in office after a coalition partner departed over a
controversial energy sell-off.
Yesterday’s pullout of the Socialist People’s Party (SF) of the
three-way alliance, in office since 2011, failed to halt the sale of a
stake in the state-owned Dong Energy to US investment bank Goldman Sachs.
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The bank agreed to pay 8 billion kroner (€1.07 billion) for an 18 per
cent stake in the company, a highly unpopular move opposed by more than
two-thirds of Danes.
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Finance minister Bjarne Corydon
welcomed a vote backing the sale by the parliamentary finance
committee, saying the proceeds would enable further investment in energy
after a period of cost-cutting. “It’s good that Dong Energy now has
firm ground under its feet,” he said.
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But several of the prime minister’s political allies have opposed the
deal with Goldman Sachs, dubbed a “shady partner” by former Social
Democrat premier Poul Nyrup Rasmussen.
After pulling out of the coalition, the SF said it would continue to support the government from the opposition benches.
Ms Thorning-Schmidt said she looked forward to a “trusting
co-operation” between her former coalition partner and her
administration, already dependent on opposition support from the
Red-Green Alliance. Seven weeks after her last cabinet reshuffle, she
promised to fill quickly the six vacancies left by departing SF
ministers.
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The move to sell off the energy company stake drew huge protest on
Wednesday night outside the Copenhagen parliament, known as Børgen (the
Castle). Protesters carried a banner bearing a vampire squid – a nod to a
description of the US bank’s controversial investment practices in a
2009 Rolling Stone article.
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“I’m very disappointed a red government can push this kind of sale,” said Solveig Weiss,
a retiree, to Bloomberg. “It’s completely right-wing policies and
certainly doesn’t help that they’re selling shares to a somewhat dodgy
enterprise.”
Goldman Sachs declined to comment on the sale yesterday “as a matter of principle”.
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Ms Thorning-Schmidt has been under fire since becoming Denmark’s first woman leader in 2011.
Faced with growing deficits, her administration has pushed through
reform measures that have riled party rank-and-file, such as raising the
pension age, lowering welfare and cutting corporate tax rates.
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