‘Gucci Helle’ faces fight to form coalition that will last

The left-leaning Danish politician once derided by her own party as “Gucci Helle” because of her taste for designer clothes and pricey accessories started work yesterday as Denmark’s prime minister designate, setting out to build a united government from a scattered “red bloc” of former communists and pro-market liberals.

Social Democratic leader Helle Thorning-Schmidt, 44, is set to become Denmark’s first female head of government after her alliance secured 92 seats and a narrow majority in the 179-seat Folketing on Thursday night, ousting a rightist coalition.

The election ended ten years of centre-right rule and cut the influence of the Danish People’s Party (DPP), an anti-immigration group that had used its leverage on the previous government to clamp down on asylum seekers, especially Muslims.

Ms Thorning-Schmidt, who is married to Stephen Kinnock, the son of former British Labour leader Neil, now faces the challenge of crafting a joint platform for her diverse coalition of former Marxists, environmentalists, Social Democrats and Social Liberals.

“What we need to start doing is to get a grip on the economy. That is what we need a new government for,” she said.

But the “red bloc” parties do not agree on taxes and welfare cuts to shore up public finances amid Europe’s debt crisis, and Danish newspapers have questioned how long a coalition could last.

Social Liberal leader Margrethe Vestager – whose party straddles the middle of Danish politics – opposes Ms Thorning-Schmidt’s plans for tax hikes for wealthy Danes. She had backed the former government’s plans to raise the retirement age by two years to 67 by 2020 and trim benefit periods for the unemployed, and says she will not go back on that agreement.

Outgoing premier Lars Loekke Rasmussen’s Liberals gained one seat and remain the biggest group in parliament but lost power because their conservative coalition partner dropped ten seats while the far-right DPP – which backed them in parliament – lost three.

In modest changes on immigration, the “red bloc” is likely to focus more on integrating those already in the country, than opening up the borders to more.

DPP leader Pia Kjaersgaard promised she wouldn’t fade into the shadows while in opposition. “Congratulations on the victory, you deserve that,” she told Ms Thorning-Schmidt. “But I think you have tough times ahead.”

After returning the Social Democrats to power following ten years in opposition, no-one questions Ms Thorning-Schmidt’s credentials as leader She led her party’s election campaign with confidence, poise and flashes of wit.

But the mother of two, who said she aims to have a coalition government in place when parliament reconvenes on 4 October, still faces doubts about her ability to act as a unifying figure. Tall, blonde and elegantly dressed, with a master’s degree in political science, she had been a member of the European Parliament in Brussels for five years when she was elected Social Democratic leader in 2006.

In 1996, she married Mr Kinnock, whom she met in Belgium. She lives with their daughters, Johanna, 14, and Camilla, 11, in Copenhagen, while her husband is based in Switzerland as a director of the World Economic Forum.

Their living arrangements were the focus of an investigation amid allegations the couple had evaded taxes by under-reporting the number of days Mr Kinnock spent in Denmark. His wife admitted making a mistake and was cleared of tax evasion.