Danes vote in close election as PM gambles on economic upturn
By Sabina Zawadzki and Annabella Nielsen
COPENHAGEN (Reuters) - Danes voted on Thursday in a cliff-hanger election, where an opposition centre-right alliance is seeking to oust Prime Minister Helle Thorning-Schmidt, who is gambling that an economic revival will secure her a new term.
Denmark's first female premier, Thorning-Schmidt heads a centre-left alliance that has drawn level in the polls with the opposition in recent weeks. It had trailed because of unpopular reforms and charges of broken promises since taking power in 2011.
The opposition alliance, led by Lars Lokke Rasmussen, a former prime minister, is promising tax breaks and tougher controls on immigration. He will have to rely on support from a right-wing, anti-immigrant and eurosceptic group.
On Thursday, a weighted average of recent polls showed Rasmussen's centre-right fractionally ahead, on 50.6 percent against 49.4 for the centre-left. But one of the last polls also indicated a slim lead for Thorning-Schmidt's alliance. And pollsters said up to a fifth of voters were undecided.
Danes in central Copenhagen reflected the divisions over the early election, called by Thorning-Schmidt before a September deadline because of signs of an economic revival. Growth of 1.7 percent is forecast for this year.
"We don't need lower taxes. The rich will survive," said Peter Gaub, 29, who said he would vote for Thorning-Schmidt, who became well known abroad for taking a selfie with President Barack Obama at a memorial service for Nelson Mandela.
Britta Andresen said she favoured Rasmussen because of his tougher line on immigration. "You're welcome to come but you have to fit in and work," she said.
If the polls showing a knife-edge race are correct, the vote may become a repeat of a 1998 election that was so close just 180 votes from the Faroe Islands tipped the balance in favour of the centre-left.
In a Nordic country known for consensus politics, differences between the two blocs have more to do with their leaders' styles - both are accused of extravagance, with nicknames of "Gucci Helle" and "Luxury Lars" - rather than their policies .
Rasmussen's Liberals want to freeze state spending and introduce tax breaks; Thorning-Schmidt's Social Democrats have pledged increased spending.
"Especially from a financial-market point of view, there's no difference - both sides are in favour of our fixed exchange rate policy and conducting a responsible fiscal policy," Danske Bank Chief Economist Steen Bocian said.
Thorning-Schmidt's side trailed Rasmussen's by as much as 17 points over the past four years. But it has caught up thanks to a reviving economy, her dignified response to an Islamist shooting attack and her high standing among fellow EU leaders.
She also has lost no opportunity to remind voters of Rasmussen's past financial scandals, albeit minor ones. He in turn lists the promises she has broken since taking the helm in 2011, such as improving health services and spending more on education.
Her reforms, while ultimately stimulating the economy, were not popular. They included cuts to unemployment benefits and student grants despite promises of better services.
Uncertainty lingers about the role of the right-wing Danish People's Party which has surged in popularity in recent years and came out top in European Parliament elections last year.
The anti-immigrant eurosceptic group supports the Liberals but has not made clear whether it would join their government should the opposition bloc win the election.
Polls close at 1800 GMT followed immediately by two exit polls. Counting in Denmark is expected to finish at 2200 GMT.
(Writing by Sabina Zawadzki and Alister Doyle,; Editing by Larry King)
