ABSTRACT
In the late 1980s, the Danish Government pursued a policy of reducing public expenditure and taxation in an effort to limit inflationary pressure on the economy. As part of this policy, agreements were reached with the amter to limit their tax rates (Council of Europe, 1993, p 21). On only one occasion (1987) were these restrictions formalised into law. Nevertheless, the central government was in a very strong position in its discussions with the amter. National legislation could always be introduced to force them to reduce or maintain their rates. The emphasis, however, remains on negotiation rather than confrontation. It appears that Danish amter financial independence may only be acceptable to the Member State when the ultimate power on such matter remains at the national level.
