Denmark is to close four embassies in 2012, with embassies in Zambia, Benin and Iraq to join a previous decision to close the embassy in Nicaragua.

The closures are taking place as a result of Denmark phasing out development aid to the countries and “to serve Danish interests in the best possible way at a time of a tight economic framework”, a Foreign Ministry statement says.

But at the same time Denmark is to open two other offices – in Libya and Burma.

The cutbacks come as a result of requirements for the state to save some DKK 1 billion in order to finance a housing job package designed to provide craftsman subsidies for those wishing to improve their properties.

Foreign Minister Villy Søvndal previously criticised the Liberal-Conservative government for its cutbacks in Denmark’s diplomatic service, but is less critical over today’s announcement.

“As with other ministries, the Foreign Ministry has to be part of efforts to restore the balance in public finances and ensure a continued international belief in the Danish economy. We have therefore chosen to close three embassies in countries where our bilateral efforts are being reduced anyway,” Søvndal says.

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Edited by Julian Isherwood