Despite rising data security concerns and a mounting number of data breaches, the government plans to cut funding for data protection in Denmark by nearly 11%, targeting the country’s only public data watchdog, the Danish Data Protection Agency (Datatilsynet).
Government Proposes Budget Cuts Amid Data Crisis
The Danish government has unveiled plans to reduce the budget of Datatilsynet by DKK 6.1 million starting in 2026, representing a cut of approximately 11%. This decision is outlined in the government’s recently proposed financial legislation and comes at a time when Denmark is facing a growing number of cybersecurity and personal data protection challenges. Digital risks are becoming more common in everyday life.
The cuts are part of a broader political effort to streamline public administration, with the stated goal of reducing state operational costs by DKK 5.5 billion by 2030. However, critics warn that scaling back resources for Datatilsynet may weaken Denmark’s ability to enforce data protection laws at a time when threats are rising. The debate about data protection in Denmark is likely to continue, as many people depend on strong protection of their personal data.
Persistent Data Breaches in an Increasingly Digital Society
Denmark ranks among the most digitized countries in the world, and digitalization continues to expand into more areas of government and everyday life. However, this increased reliance on digital infrastructure brings greater risk. According to public records, the number of reported breaches on data protection in Denmark has sharply increased over the past few years.
In recent days alone, Datatilsynet has launched an investigation into the Capital Region’s handling of personal information and issued criticism of the Danish Prison and Probation Service for its improper processing of sensitive data access requests. These events highlight what many see as a growing vulnerability in data handling and oversight across various institutions.
In March 2025, one of the country’s largest data leaks impacted approximately 260,000 individuals, prompting widespread concern over institutional safeguards. Despite this, finance ministry documents show funding to Datatilsynet will continue declining annually through 2029. By then, nearly 25% of the agency’s budget risks being slashed compared to current levels.
Experts Warn of Consequences
IT security professionals and advocates for data protection in Denmark have pushed back strongly against the proposed cuts. They argue that reducing Datatilsynet’s resources is equivalent to removing warning signs and barriers at a railroad crossing — a critical error in a system that increasingly relies on data-sharing and digital transactions.
Experts stress that the watchdog plays a vital role in ensuring citizens’ personal information is processed lawfully and securely and in educating public agencies and private companies about complex rules for data protection in Denmark under laws like the General Data Protection Regulation (GDPR).
They contend that rather than facing budget reductions, Datatilsynet should be bolstered with more staff and funding to handle an increasing volume of complex cases and establish clear guidelines across expanding technological domains such as artificial intelligence, biometrics, and automated decision-making.
Government Defends Decision as Administrative Streamlining
Despite the backlash, the Ministry of Justice has defended the funding cuts, stating that the reductions are part of a broader priority to decrease public sector bureaucracy. Officials note that alongside overall reductions, three new full-time positions have been earmarked specifically for the Greenlandic branch of the agency, although this is not reflected in the primary financial overview.
The establishment of a Ministry of Digitalization in 2022 and a national digital strategy in 2023 were expected to enhance Denmark’s digital infrastructure, but stakeholders now question whether these initiatives are being matched with sufficient safeguards for data protection and privacy.
Justice Minister Peter Hummelgaard has declined to comment publicly on the proposed funding cuts.
Looking Ahead
As digital services continue to grow throughout Danish society—from public healthcare to banking and education—the role of data oversight agencies like Datatilsynet becomes more critical.
With the government planning cumulative budget reductions and no clear indication of alternative strategies to offset the loss in oversight capacity, data privacy advocates are sounding the alarm. They argue that Denmark risks undermining the very institutions tasked with keeping personal information safe, just as the digital risks facing European citizens are reaching new heights.
Parliament is expected to continue discussions on the final annual budget over the coming months. Whether these proposed cuts survive the full legislative process remains to be seen.
