COPENHAGEN, May 12 (Reuters) - Political talks in Denmark on the government's pension reform proposal were suspended without a deal late on Thursday, but were set to resume at midday on Friday, officials said.
The center-right government is in tough talks with the populist Danish People's Party and the centrist Social-Liberal Party on its 2020 economic plan, which includes a proposal to phase out an early pension scheme.
Politicians emerging from the talks expressed optimism that a deal could be reached on Friday.
'I think we'll be done tomorrow,' Social-Liberal Party leader Margrethe Vestager said on public broadcaster DR's TV News.
Kristian Thulesen Dahl, a member of parliament for the Danish People's Party, also said that the tone of the talks was good and there was hope for a deal on Friday.
Success or failure of the talks could determine when parliamentary elections are held in Denmark.
Liberal Prime Minister Lars Lokke Rasmussen must hold elections by mid-November, but he can call an early ballot at any time with just three weeks' notice, and commentators have said a deal on the economic plan may pave the way for a vote.
Rasmussen's government has staked its future on a plan that aims to balance public finances by 2020 by curbing welfare benefits, above all an early pension scheme that it says Denmark can no longer afford as its population ages.
The proposal to phase out the early retirement scheme that lets Danes retire at age 60 instead of 65 and bring forward an increase in the general retirement age to 67 is supported by the Social-Liberals but opposed by the Danish People's Party.
The Danish People's Party has sought in the negotiations to preserve the early pension scheme for low earners who do not built up savings for retirement.
The government has resisted those demands because they could severely dilute the impact of the reform.
On Wednesday, as part of the effort to clinch a deal on the 2020 economic plan, the government agreed to tighten controls of Denmark's borders after demands for such a policy shift by the anti-immigration Danish People's Party. For details, see
That shift has drawn fire from opposition politicians in Denmark and European officials worried about the future of unrestricted travel in Europe.
The Liberal-Conservative coalition has ruled since 2001 with the support of the Danish People's Party, the third-biggest group in Denmark's 179-seat parliament with 24 members.
The governing bloc's weakness in opinion polls has for months suggested that Rasmussen would wait until the autumn to hold the election, but analysts say that a deal on his economic plan could be a springboard for an early ballot in June.
The polls show that the coalition will face a stiff election challenge from the Social Democrat-led opposition, which aims to return to power after a decade outside government.
((Reporting by John Acher; Editing by Padraic Cassidy, Gary Crosse)) Keywords: DENMARK POLITICS/TALKS (john.acher@reuters.com; +45-2630-9650; Reuters Messaging: john.acher.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The center-right government is in tough talks with the populist Danish People's Party and the centrist Social-Liberal Party on its 2020 economic plan, which includes a proposal to phase out an early pension scheme.
Politicians emerging from the talks expressed optimism that a deal could be reached on Friday.
'I think we'll be done tomorrow,' Social-Liberal Party leader Margrethe Vestager said on public broadcaster DR's TV News.
Kristian Thulesen Dahl, a member of parliament for the Danish People's Party, also said that the tone of the talks was good and there was hope for a deal on Friday.
Success or failure of the talks could determine when parliamentary elections are held in Denmark.
Liberal Prime Minister Lars Lokke Rasmussen must hold elections by mid-November, but he can call an early ballot at any time with just three weeks' notice, and commentators have said a deal on the economic plan may pave the way for a vote.
Rasmussen's government has staked its future on a plan that aims to balance public finances by 2020 by curbing welfare benefits, above all an early pension scheme that it says Denmark can no longer afford as its population ages.
The proposal to phase out the early retirement scheme that lets Danes retire at age 60 instead of 65 and bring forward an increase in the general retirement age to 67 is supported by the Social-Liberals but opposed by the Danish People's Party.
The Danish People's Party has sought in the negotiations to preserve the early pension scheme for low earners who do not built up savings for retirement.
The government has resisted those demands because they could severely dilute the impact of the reform.
On Wednesday, as part of the effort to clinch a deal on the 2020 economic plan, the government agreed to tighten controls of Denmark's borders after demands for such a policy shift by the anti-immigration Danish People's Party. For details, see
That shift has drawn fire from opposition politicians in Denmark and European officials worried about the future of unrestricted travel in Europe.
The Liberal-Conservative coalition has ruled since 2001 with the support of the Danish People's Party, the third-biggest group in Denmark's 179-seat parliament with 24 members.
The governing bloc's weakness in opinion polls has for months suggested that Rasmussen would wait until the autumn to hold the election, but analysts say that a deal on his economic plan could be a springboard for an early ballot in June.
The polls show that the coalition will face a stiff election challenge from the Social Democrat-led opposition, which aims to return to power after a decade outside government.
((Reporting by John Acher; Editing by Padraic Cassidy, Gary Crosse)) Keywords: DENMARK POLITICS/TALKS (john.acher@reuters.com; +45-2630-9650; Reuters Messaging: john.acher.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.