1986: The Death of Denmark universal welfare state?

[Euroman1981]

Until the mid 1980s Denmark was effected by an economical crisis. And some even feared back then that the krone would collapse to do high inflation. But the economy was saved do many factors and the danish welfare state remains a model for many progressives like Bernie Sanders in the U.S.

But what if this hadn't happened? And the political stunts which IRL saved the danish economy never went into play? And the krone collapses mid 1980s? Like we saw in Greece in OTL? With massive riots i Århus og Copenhagen and politicial unstability?How do this effect Northern Europe until 1990? Will West Germany offer a beleaguered danish govern assistance?

And if Denmark is able pull through, but the Welfare state is dismantled. How would that effect the view of the progressive Scandinavian democracy?

 

[General Tirpitz]

The 1990's depression in Finland didn't end the welfare state (though it did weaken it) so I am not sure it would do so in Denmark either. You had banks collapsing, 13% drop in GDP and unemployment nearing 20% with a real danger that the IMF would have taken control over the Finnish economy. There were many lasting effects though, like a rise in long-term unemployment and public debts. I would think that the crisis made the EU and Euro more popular in Finland than they would have been otherwise. The depression also influenced the way how Finns think about economics and probably explains why Finland took such a hardline during the European debt crisis towards crisis countries.

 

[VoidTemplar]

Any mainstream party that stood on a platform of dismantling the welfare state in Denmark in 1986, be it Conservatives or Liberals would get crucified for it. Remember that Fogh had to pull a reverse Blair to get elected in 2001