COPENHAGEN (Reuters) - Denmark's Prime Minister Helle Thorning-Schmidt said on Tuesday the country's economic crisis was over and promised $5.7 billion in extra spending, fuelling media speculation that she was about call a national election.
The bullish announcements came just a year after Denmark had to halve its 2014 growth outlook as its export-driven economy faltered on stagnation in Europe.
"Today we can say very clearly that Denmark is out of the crisis," she told reporters, citing lower unemployment, consistent economic growth in recent quarters and consumer confidence at the highest level in years.
"We are through the most difficult years and Denmark is now again on a secure path," she added.
She announced 39 billion Danish crowns in extra spending up until 2020 for healthcare, the elderly, children's day care, the environment and the police, and shrugged off questions about the election.
"The election comes when it comes. But this is a plan that goes into the next election term, and that is our message: we have a plan for the coming years," she said.
An economy ministry source told Reuters the government was planning to announce new forecasts on the economy at 1230 GMT on Tuesday, two days early.
A group of veteran economic advisers, known as the Wise Men, also applauded the government's policies on Tuesday and predicted growth this year of 1.9 percent and next year of 2.3 percent. The economy grew 1.1 percent in 2014.
On Friday, sources close to the prime minister told Reuters she would probably announce the date of a vote this week, although a final decision was yet to be made.
In Denmark, only the prime minister can choose the timing of an election, although in this term there is a deadline of Sept. 14.
Polls show the ruling Social Democrats behind the main opposition Liberals, but the ratings of Thorning-Schmidt and her party have been on the rise in recent weeks, since the government promised other new spending and proposed cutting benefits for some immigrants.
(Reporting by Erik Matzen, Teis Jensen; Writing by Sabina Zawadzki; Editing by Andrew Heavens)
