Costs, Income, Fortune and Expenditures of the Danish Royal Family

[Muhler]

A couple of articles: En million kroner mere til de kongelige - De Kongelige

The government has granted the DRF a pay rise.
Apart from that the the DRF apanage is regulated twice a year so that it follows the comparative rise in salary among state employees.
QMII will be granted 700.000 DKK more next year. Of these 100.000 will go to Prince Henrik.
As QMII will celebrate her 40th jubilee in 2012, the expences will of course be higher than usual.

Frederik will get 200.000 DKK more next year, of which a certain percentage will go to Mary. (Roughly 10 %).

Joachim will recieve 100.000 DKK more. He can probably use them....

Everybody else will not get a payrise..

However a few weeks ago, a survey was published in which people had been asked whether they think the DRF is too expensive.
Hver tredje dansker: Kongehuset er for dyrt - Royale - BT.dk
The combined costs for the DRF, everything included, except PET protection, has officially been calculated to 342.2 million DKK.
34 % belive the DRF is too expensive.
47 % find it appropriate.
2 % believe it's not enough
and the rest must be undecided.

In fact I'm surprised it's only 34 % who think it's too much.
Because this is the kind of surveys where you with guarantee can be certain to get a high percentage of negative replies.
It's like asking: Do you think the politicians spend too much money?
No matter what, you can be sure a lot of people will tick the "yes-box".

 

[Fürstin Taxis]

The price-perfomance ratio leaves much to be desired.

 

[Muhler]

Sådan bruger kongehuset dine penge - Royale | www.bt.dk

A very interesting and very detailed break down of the DRF economy and running costs.
It deserves a full translation, unfortunately I simply haven't got time for at least a couple of days to do that, so if anyone should be up for the challenge....

 

[Muhler]

This is a full translation of an article in BT 30. April 2012. See above

(As with all such articles it’s important to look at the DRF as a firm).


Twin birth, the IOC membership and visits to Bahrain, Russia, Ukraine, Australia, Vietnam, Rwanda, USA, Japan, Greenland and Mozambique – and on incoming state visit from South Korea – has been expensive for the DRF in 2011.
That’s what the annual account from 2011, which has just been published by the court, shows.


All in all the DRF have had incomes of more that 77.342.986 DKK (1) and that’s an improvement of a couple of thousands more than in 2010. The expenses on the other hand have over that one year risen with four million DKK to 77.062.606 DKK.
With financial incomes added, the surplus from 2011 only approach one million DKK – 975.455 DKK – and that’s over a million and a half less than the last account. (2)
The surplus is transferred to the equity, which is now a money-tank of almost 20 million DKK – to be exact 19.997.623 DKK.


The money has among other things been spend on IT, machinery, maintenance of buildings and ”bigger events” as it is called in the account. The DRF have among other things got a new homepage, the Yellow Mansion (3) has been modernized and the kitchen at Gråsten is due for a thorough renovation.
And then the court has bought an electric car and exchanged some of the cars with energy saving vehicles. Apart from that there has been a need for hiring an extern course/education-manager for a number of courses for court officials, where acknowledgement, communication and team thinking was emphasized.


Here is the apanage for the individual DRF members:


Queen Margrethe:
Received 75.291.549 DKK in apanage (4) and as such rose with 1.6 million DKK compared to last year. She received along with Prince Henrik and Princess Benedikte 6.4 million in vat-refund, (5) because the royals are exempt from paying vat. The ”household” of the Queen had altogether a surplus of 975.499 DKK.


Princess Benedikte:
Receives according to law 1.5 % of the apanage to the Queen, which amounts to 1.129.375 DKK.


The Prince Consort:
Does not figure individually in the accounts but he receives money from his wife, which determined by the law amounts to ten percent of the apanage to the Queen. 7.529.155 DKK went to him.


Crown Prince Frederik:
Received 18.523.746 DKK in apanage and such he rose 400.000 DKK compared to 2010. The expenses from him – and his wife – amounts to 18.476.737 DKK. The money have among other things been used to purchasing furniture and furnishing the mansion. He received 2.4 million in vat-refund. The ”household” of the Crown Prince altogether creates a surplus of 66.306 DKK.


Crown Princess Mary:
Get a salary from her husband of 10 % of the apanage. She received 1.843.275 DKK.


Prince Joachim:
Received an apanage of 3.275.690 DKK. Apart from that he received 396.429 DKK as vat-refund. There is however a requirement regarding the ”salary” to his wife, Princess Marie. (6) This is for the couple to agree on among themselves. Joachim did however get a raise in the apanage of 800.000 DKK when he married Marie in 2008.


In the accounts is also the so-called frame-amount, which is money for clothing, furnishing, counseling, secretaries and other items that are ”non official”. Here the CP couple spend 3.7 million DKK, while the Regent Couple spend 9.8 million DKK. But then they had look after the running and maintenance of Marselisborg Manor, the hunting lodge in Trend and Chateau de Cayx and Gråsten Manor.


(1) Roughly 13 million $ or 10 million €.


(2) In a family run business, which is basically what the DRF is, any surplus is good. Remember that expenses also include salary for the managers i.e. the members of the DRF.


(3) The DRF administration. Located next to Amalienborg.


(4) Actually ”state-benefit”, but let’s keep it simple and call it apanage.


(5) Vat in DK constitutes 25 %. That amount is refundable for the DRF, as they don’t pay vat.


(6) This must be a typo. I believe what is meant is that there is NO requirement for a specific salary for our Marie.

 

[Muhler]

Follow up on the article above

The key figures as I see it are the vat-refunds and the frame account.

Most of the expences go to salaries for the staff, who are state-employees. I.e. akin to civil servants, just paid by the court.

Most other expences are vat-refundable. I.e. heating, water, furnitures, petrol, food for themselves, guests and staff and so on, and so on....
That means we take the figure that are vat-refundable and multiply with four.
In that figure is also a considerable part of their private consumption.

However a number of necessities like food and phonecalls, are no doubt covered by "the firm". - Show me a family owned business that doesn't cover such expences in a similar manner and I'll show you a business in serious need of a financial advisor.
The same thing about furnishing the official parts of the mansions. They do after all live in the whole building and not just in their private apartments.

So from that we can see that QMII, PH and Benedikte purchased for 25.6 million DKK in goods and services. - For the company.

M&F purchased goods and services for 9.6 million DKK.

While Joachim and our Marie purchased for 1.6 million DKK.

Then there is the frame account, which is as I interpret it the private expenses paid from their own "salary". With that they pay for private travels, clothing, furnitures in the private apartments and privately employed staff, like nannies and private secretaries and so on.

From that we learn that the Regent Couple had "private" expenses of 9.8 miilion DKK, which includes maintaining the privately owned homes of Marselisborg, Cayx and Trend.
So their "salary" must be a higher than that. How much is anyone's guess.

M&F had "private" expenses for 3.7 million DKK. They are establishing a home, which means that they buy many things for the first time, just like other young families. Not to mention that they have an active social life with many friends. (Not all birthday presents can be charged to the business account). To that we should also add two nannies and at least one private secretary, Caroline Heering, plus salary (we may assume) to Søren Heedegaard when he accompany Mary on travels.
And my guess is that they at present don't have much of a surplus. So a cautious guess is that M&F's salary amounts to 4 million DKK in total. Roughly 538.000 € or 673.000 $. - Which is a fairly modest salary considering their status. Many board members and bank managers here in DK have a higer salary without feeling the least bit ashamed.

ADDED: To the DRF salary should be added the vat-refunds and other perks and discounts and that they don't pay income tax. So relatively speaking the salary I have estimated here should be increased by 50-75 %.
ADDED AGAIN: I start to confuse myself now! It's that roundabout way of thinking. Okay, if the DRF were normal people, they would earn roughly 50-75 % more.

Does this make sense? Or do you think I need a course in how to interpret accounts?

 

[Madame Royale]

Makes sense to me, Muhler.

Mary and Frederik live quite modestly in comparison to other people in the very same position. Certainly worth their weight in DKK.

 

[biboquinhas]

I don't think they live quite modest...God! They live in a Castle, they travel, thet ahve very expensive clothes...and they live quite modest???No for sure. To me Princess Mary should stop buying so mucht expensive and exquisite clothes...this is not the most important thing...the most important thing is what she can do for the Danish people, and it doesn't matter how many events she took part, what it does matter is her work behind the scene...and to me Mary is so mucht talk for her expensive clothes, she wears a new dress almouts every event, yes she does recycle, but no so mucht has she should do, she has plenty of dresses that she has wore just one time...that is a shame!

 

[NGalitzine]

I agree Muhler, many executives and professionals earn much more than 538.000 € and are fortunate enough not to live in the public eye and have everything they buy and wear examined by the public. I know my dentist, dermatologist, lawyer and all of the VPs of the company I work for all earn more that that amount. A nice income no doubt, but nothing remarkable for people living private lives and certainly nothing special for people who must live their live in the public eye and be judged on everything they do.

 

[Madame Royale]

I don't think they live quite modest...God!

You're not looking at it in context. You're comparing them, with the way you or someone else (the general public) may live and it makes no sense to do that.

Compared to others in their position, they do live modestly, or rather, receive a modest apanage.

It needs to be viewed in context of their situation, and not what you or I would consider as being modest because to many people out there I'm sure you live most comfortably or would be considered as being financially wealthy, even though you may not think so yourself. It's all relative.

 

[UserDane]

...and to me Mary is so mucht talk for her expensive clothes, she wears a new dress almouts every event, yes she does recycle, but no so mucht has she should do, she has plenty of dresses that she has wore just one time...that is a shame!

A new dress for almost every event? I don't follow you. To me, Mary is one of the best royals at recycling. Perhaps you just think you see a new outfit every time she steps out in a new combination.
Even for the queen's 40th jubilee in January, she didn't even once appear in a new outfit (to a lot of people's regret).

And we're all free to discuss her work and work ethics for example instead of just her clothes.

 

[auntie]

Look at how some of the gulf state royals live, gosh, that is Waaaaaay over the top, considering so many of their nation lives in dire poverty

 

[polyesco]

Follow up on the article above


M&F had "private" expenses for 3.7 million DKK. They are establishing a home, which means that they buy many things for the first time, just like other young families. Not to mention that they have an active social life with many friends. (Not all birthday presents can be charged to the business account). To that we should also add two nannies and at least one private secretary, Caroline Heering, plus salary (we may assume) to Søren Heedegaard when he accompany Mary on travels.
And my guess is that they at present don't have much of a surplus. So a cautious guess is that M&F's salary amounts to 4 million DKK in total. Roughly 538.000 € or 673.000 $. - Which is a fairly modest salary considering their status. Many board members and bank managers here in DK have a higer salary without feeling the least bit ashamed.

thanks Muhler for the excellent summary.
i think you point out a great point about establishing a home front for the first time. Many of these expenses (baby furniture and regular furniture, etc.) wont be coming up again.

 

[Nordic]

A new dress for almost every event? I don't follow you. To me, Mary is one of the best royals at recycling. Perhaps you just think you see a new outfit every time she steps out in a new combination.

And if Mary had a new outfit for almost every event, there would be no need
to recycle all the outfits from almost 10years ago. Even I don't have that old clothes in my modest wardrobe.


I don't know what Prada outfits cost (and don't really care), or the Valentinos/Elie Saabs etc that other Princesses wear. If Mary recycles Prada or other outfits first worn 2004, I think they have proved to be a
great buy.

 

[Viv]

Royal Recycling is the way forward not only because of the actual
budget of the individual royal but also - especially? - because of the 'environmental sustainability' ! IMO this is more important than
flashing new clothes for each and every occasion!
IMO there's reason to believe that some fashion houses and designers
are giving our royals the occasional free piece of clothing for publicity/product placement. I suspect this is the case with CP Mary
and Princess Marie, who are often wearing especially day clothes by Danish designers, items within financial reach most working women for whom clothes are a priority.
I suppose that the more expensive designer stuff discreetly influence
the choice of clothes of the privileged. Many royals are good models in this respect and set the sartorial standards for the noveaux riches.
And just for the record: In a fairly recent book on the clothes of Queen Margrethe a couple of free items are mentioned.

viv

 

[biboquinhas]

We all wear our clothes more than one time of course..AND I dind't said that she doesn't recycle of course she recycles...but not so mucht has she could do...has no need to keep buying new and expensive things, a Fendi dress she wore a few days ago, a new dress by the way...she was in need for a new dress??? I don't think so... doesn't she have lots of them? doesn't she have lots of dreeses that she had wear only once...of course she has lots of pieces that she wear only once...I can recall that beautiful mini red drees from Matthew Williamson she wore for Frederik anniversary for example, I have only seen it once.. and this is just one example....there are mucht more....how many ski suits does she have from the first time we saw her skiing with Frederik...just start count them until you arrive to this last one from North Face and to her new napapijri coat and now a Moncler of course...

 

[polyesco]

We all wear our clothes more than one time of course..AND I dind't said that she doesn't recycle of course she recycles...but not so mucht has she could do...has no need to keep buying new and expensive things, a Fendi dress she wore a few days ago, a new dress by the way...she was in need for a new dress??? I don't think so... doesn't she have lots of them? doesn't she have lots of dreeses that she had wear only once...of course she has lots of pieces that she wear only once...I can recall that beautiful mini red drees from Matthew Williamson she wore for Frederik anniversary for example, I have only seen it once.. and this is just one example....there are mucht more....how many ski suits does she have from the first time we saw her skiing with Frederik...just start count them until you arrive to this last one from North Face and to her new napapijri coat and now a Moncler of course...

I think Mary is one of the royals that recycles often.
And when it comes to clothes lets not overlook that your body changes and often using the same dress you did a few years back is not an option. Mary has gone from being 32 with no kids to 40 with 4 , as much as she is athletic and fit, some items just wont do.

 

[dbarn67]

We all wear our clothes more than one time of course..AND I dind't said that she doesn't recycle of course she recycles...but not so mucht has she could do...has no need to keep buying new and expensive things, a Fendi dress she wore a few days ago, a new dress by the way...she was in need for a new dress??? I don't think so... doesn't she have lots of them? doesn't she have lots of dreeses that she had wear only once...of course she has lots of pieces that she wear only once...I can recall that beautiful mini red drees from Matthew Williamson she wore for Frederik anniversary for example, I have only seen it once.. and this is just one example....there are mucht more....how many ski suits does she have from the first time we saw her skiing with Frederik...just start count them until you arrive to this last one from North Face and to her new napapijri coat and now a Moncler of course...

Mary recycles quite alot and when she wears clothes from lower end designers many here have complained that she shouldn't.

I have no problem how much these royal ladies spend on their wardrobe. IMO, they're advertising for their royal houses and their countries.

 

[nwinther]

but not so mucht has she could do

How much could she recycle?

has no need to keep buying new and expensive things...she was in need for a new dress???

What does she actually need? When does anyone actually need new clothes? And couldn't it strictly speaking be a mail-sack? Does it need to be something that cost anything?

I don't think so... doesn't she have lots of them? doesn't she have lots of dreeses that she had wear only once. ...of course she has lots of pieces that she wear only once...I can recall that beautiful mini red drees from Matthew Williamson she wore for Frederik anniversary for example, I have only seen it once.

You mean "I have never seen pictures of Mary at two seperate occations wearing that particular dress" and conclude that she has worn that dress only once? You know, seeing an image of Frederik not drinking a beer, doesn't mean he quit drinking. Just like seeing two images of Frederik drinking beer doesn't mean he's an alcoholic. Surely Mary wears clothes when there's no camera around, and surely there are plenty of pictures of Mary that doesn't reach the public eye because not all pictures are of interest.
I'm not saying that there aren't a lot of clothes Mary only wears once or a couple of times and that's it. But I have nothing to prove it (absence is not proof), and frankly, I don't think it's extraordinary behaviour on her part to have some things she's only worn once (I have several things - even things that I've never worn - not Armani but still). I think loads of women have this issue. A 1st-world problem if I ever saw one.

 

[Nordic]

.I can recall that beautiful mini red drees from Matthew Williamson she wore for Frederik anniversary for example, I have only seen it once.. and this is just one example....

She has actually recycled that pretty dress at a private birthday party a couple of summers ago.

 

[auntie]

I think Mary is one of the royals that recycles often.
And when it comes to clothes lets not overlook that your body changes and often using the same dress you did a few years back is not an option. Mary has gone from being 32 with no kids to 40 with 4 , as much as she is athletic and fit, some items just wont do.

a great point, we all remember when she recycled a green suit to a visit to Belgium and how it was tight on her

 

[kbk]

Is Count Ingolf still getting money from the state? What about his big sister? Why they are not included in the annual reports of the Royal Court?

 

[Muhler]

An article from BT: Krisen kradser - kongehuset forgyldes - Royale | www.bt.dk

It begins with King Juan Carlos cutting his budget. Spain is as you all know in very serious financial trouble.

However the DRF has recieved 9.7 million DKK more in apanage since the financial crisis started in 2008. - To 2011, as the budget for 2012 hasn't been released.
As far as my little head can calculate that's between two and three million DKK more per year on average.
Which covers the various expences, including salary for the staff. - And story is angled so that the impression is that this is oh so terrible.

- Well, ain't that remarkable! My salary has also gone up since 2008.
(Not as much as I would like, but that's never going to happen anyway....)
And surprise, surprise, the prices have also gone up.

The financial crises has been mild here in DK. The main problem is that people don't spend money enough. - Partly due to some utterly idiotic initiatives from the politicians, but that's another story.

Right now Fredensborg Park is going through a major renovation, that's the kind of projects the building sector is screaming for, not cut backs.

IMO the most common ailment here in DK is: at have ondt i røven.

That's a very common saying and it translates to: the ass hurts. That expression is used when someone complains about others getting something they don't get themselves, even if they are fine themselves. It's related to envy, just worse, because it so often these days also extends to those who are genuinely unfortunate.
This is a school example of the ass hurts.

It should be added that røv = ass is no longer considered a dirty word here in DK.

 

[Muhler]

The very serious newspaper Jyllands Posten has an article about the finances of the DRF - in the sense as it is run as a company.

Millionunderskud i kongehuset - Indland

The annual report for 2012 has been published and DRF comes out with a deficit of 1.780.352 DKK.
The reason for that are the added expences to cover the Chinese statevisit and QMII's 40th jubilee.
The deficit will be covered by the equity of the DRF, which amounts to more than 18 million DKK.

The chief of the economy of the DRF, Søren Kruse says: "It's all about making things hang together financially over many years.
We recieve a fixed amount (the apanage) which is independant of our activity level on any given year. That's why you have to put something aside the years there is a surplus, for the years where there are more than an average number of activities".

In 2011 the DRF had a surplus for a little less than one million DKK.

However 2004 was a year with a large deficit, due to M&F's wedding. That amounted to minus twelve million DKK.

BB will be up later today.

-------------------------------------------------
ADDED.

Summary of a Q&A in Billed Bladet #17, 2013.
Where a Kim Rasmussen ask how big QMII's private fortune is.

Jon Bloch Skipper replies that he does not know.
But counting all assets. I.e. estates including Chateau Cayx, stocks, personal possessions, collections, jewellery and so on down to the last shirt, much of it being quite unique, he will guess that the fortune amounts to several hundred million DKK. (100 million DKK = roughly 17-20 million $).

 

[Nordic]

The annual report for 2012 has been published and DRF comes out with a deficit of 1.780.352 DKK.

The DRF had a deficit but the CP couple had a surplus again.

 

[ricarda]

Yes, according to the annual report the deficit concerns the Royal Civil List (= Queen Margrethe and her court). And it was caused by the Throne Jubilee, the Chinese State Visit and the stay of the royal family + yacht in London during the Olympic Games.
The Crown Prince and his administration had a surplus of almost 440.000 kr.

 

[polyesco]

I love that the DRF sends out these reports each year. Its nice to read what they did all year and the line of transparency in terms of costs is nice.

I noticed on page 10, they have a photo of the Queen at the employees' "Christmas holiday party" . I hadn't seen the picture before, it looks like Christian and Isabella joined their parents and grandparents


http://kongehuset.dk/english/Organisation-and-Contact/State-Civil-List-Annuity/kongehusets-virksomhed-2012

 

[Roskilde]

I noticed that too. Every year the Queen invites their staff to julegløgg (a cup of mullet wine) and it seems like both Frederik, Mary, Christian and Bella joined this year I like they involve their children so much.


https://fbcdn-sphotos-f-a.akamaihd.net/hphotos-ak-ash3/554853_477823715622731_1884514253_n.jpg

 

[Muhler]

The government presents the Finance Act today and one of the items is the apanage to the DRF: 300.000 kroner mere til kongehuset - TV 2 Nyhederne

That part of the Finance Act is a formality as it is guaranteed to be approved in the Parliament.

Due to the financial crisis there were cut backs on the amount the DRF has recieved, so even though they get 300.000 DKK more than this year, it is nevertheless less than they recieved in 2012.

So in 2014 QMII will recieve 200.000 DKK more for a total sum of 72.3 million. In 2012 she recieved 76.1 million DKK.

Frederik will get 18 million DKK, of which Mary is automatically entitled to 10 %.
Joachim will recieve 3.2 million DKK. While Alexandra get 2.1 million DKK.

Benedikte is not mentioned.
However, combined the other members of the DRF (I.e. minus the Regent Couple) will recieve a million DKK less than in 2012.

 

[Duke of Marmalade]

I think they do get a lot of money in times like these. Especially the Queen & Frederik. Are the children included in Alexandra's support or will Joachim pay additional child support?

What exactly do they have to pay for with the money. I know from other royal houses that they decrease the amount because it 'looks better', but in return specific costs are paid for by the government, like a left-pocket right-pocket transaction.

 

[Muhler]

I think they do get a lot of money in times like these. Especially the Queen & Frederik. Are the children included in Alexandra's support or will Joachim pay additional child support?

I'm not sure off hand whether Joachim pay child support.

What exactly do they have to pay for with the money. I know from other royal houses that they decrease the amount because it 'looks better', but in return specific costs are paid for by the government, like a left-pocket right-pocket transaction.

Everything excluding security and maintenaince of the exterior of the palaces.
Staff salaries. Upkeep of the palaces interior.
Entertaining official visitors - i.e. state dinners. And in some cases housing visitors. Or when giving a return dinner.
Administration, catering for the staff, paying for uniforms (They are expensive!). Paying for the staff, when they are out to prepare an official visit either in DK or abroad.
Personal expences in connection with being on the job, including transport in cars (but not the royal yacht or planes).
In short the apanage to QMII cover the expences for a service business with around 160 employees. - Including salaray to the management - the Regent Couple.
Then we have gifts for foreign heads of states and so on and so on.

So the expences will fluctuate a bit with a tendency to go up, simply because the prices go up. But also because there are different expences, depending on jubilees, large family events and so on.

Personal expences and expences covered by the apanage are vat excempted, that's a 25% refund.

As I understand it the court presents an estimate to Statsministeriet (The PM's office) outlining the expences for the following year and unless that estimate is unreasonable it will be approved. However it also the PM's office which may "suggest" that savings may be a good idea, but the PM cannot demand savings because the court is supposed to be independent of the government and it would be most unusual indeed if the PM's office would not approve of the expences or the estimate.
Because that would mean that the civil servants advising the DRF are not doing their job properly or that the DRF is overriding the advise they get.