[WrongAssumption]

The government of Denmark does not provide unemployment insurance. Unemployment is voluntary and provided through privately owned insurance funds. The government does not pay out of unemployment benefits at all.

To get the extended benefits, you have to pay more. Like any private insurance, pay more to get better benefits.

[madsbuch]

That is wrong - while you need the insurance to be eligible, the governments finances most of the unemployment payout. It is a hybrid model.

The insurance premium is also entirely tax deductible and nowhere enough to cover the scheme - the scheme which is highly regulated, well, because the government pays for it.