Kanslergade Agreement

The two governing parties held a narrow majority of 76 out of 149 seats in Folketinget (the lower house of Rigsdagen).

The Kanslergade Agreement set in motion the reforms that would establish the Nordic model for state welfare services in Denmark.

It expanded labor rights, devalued the krone, and extended state subsidies to farmers.

Charges for social services were also fixed to affordable levels.

As part of the agreement, the Liberal Party withdrew its objections to the social welfare model advocated by the government.