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Factsheet for measure DK-2020-35/1596 – Updated – measures in Denmark
|Country||Denmark , applies nationwide|
|Time period||Temporary, 28 August 2020 – 28 February 2022|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Direct subsidies (full or partial)
|Author||Carsten Jørgensen (FAOS, University of Copenhagen), Anders Randrup (Oxford Research) and Eurofound|
|Measure added||11 December 2020 (updated 23 March 2022)|
In the end of August 2020, most of the large support packages targeted at vital parts of Danish economic life with the aim to maintain jobs and support companies ran out. However, there were still businesses that suffered from certain restrictions still in force, for instance the ban on gatherings of more than 500 people, or prohibition against staying open, as for instance discotheques and nightclubs. In order to support these affected areas, the government and the Parliament decided to prolong specific support measures.
At the end of August 2020, a gradual reopening of Danish society began, which at the same time led to a gradual phasing out of the large, comprehensive aid packages from March 2020. However, parts of the Danish business community as experience/adventure economy and cultural and sports life continued to be very much affected by a few restrictions that had not been changed at the same rate as the gradual opening. Therefore, on 28 August, the government and a majority in Parliament agreed to continue to compensate those parts of Danish business, e.eg. tourism, cultural and sports life, still particularly hard hit by one or more of the following COVID-19-related restrictions:
With the agreement, the parties agree that if one or more of these restrictions continues to apply after 31 October 2020, the parties agree that the relevant compensation schemes will be extended to 31 December 2020.
The prolongation of support packages covers a broad range of companies and forms of employment. The most comprehensive are:
To this end the parties agree that DKK 100 million (€13.3 million) will be set aside to a fund with a view to strengthen innovation and transition for particularly hard-hit industries, such as experience economy, restaurants and hotels. The parties will look at whether there is a need to follow up with further efforts targeted at the export industries.
The following updates to this measure have been made after it came into effect.
|09 December 2021||
The compensation scheme for the self-employed, etc., including the arts support scheme, is reopened with a requirement for a reduction in turnover of at least 30%. The scheme can be applied for from 1 December 2021 until 28 February 2022.
For companies that has been forced to close, the following is applicable:
Those parts of Danish business and cultural life that are forcibly closed e.g. nightlife will be able to cover all their fixed costs and access to the self-employed, etc. for the displaced.
|15 March 2021||
In spring 2021 the compensation scheme for for self-employed, freelancers and artists was extended to March 2021. For larger cultural and sport activities/arrangements (350+ attendants) the compensation scheme was extended to 31 August 2021, as it is still unclear whether these events that normally are in summer, will be able to take place despite vaccinations.
The application deadline for the compensation scheme is the 31 October 2021.
There are no specific data of the use of this ‘follow-up’ measure in particular. However, at the beginning of December the Danish Business Authority had approved 56,540 applications and paid a total compensation of DKK 12,724 million (€1,697 million). Even if the wage compensation stopped in the end of August, the business authority is still approving some applications delivered before that date. The amount also encompass specific companies compensated in line with this agreement of 28 August 2020.
Source: Erhversstyrelsen 7 December 2020.
|Applies to all workers||
Sector specific set of companies
One person or microenterprises
|Does not apply to citizens|
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
This measure is a result of a kind of 'follow up' support measure to businesses still in trouble because of current restrictions against opening. Therefore, it is a Parliament/government decision. The social partners are not involved.
The social partners on both side agree to the background and content of the support measure.
This case is sector-specific (only private sector)
|Economic area||Sector (NACE level 2)|
|I - Accommodation And Food Service Activities||I55 Accommodation|
|I56 Food and beverage service activities|
|R - Arts, Entertainment And Recreation||R90 Creative, arts and entertainment activities|
|R91 Libraries, archives, museums and other cultural activities|
|R93 Sports activities and amusement and recreation activities|
This case is not occupation-specific.
Eurofound (2020), COVID-19. Better conditions for particularly hard hit parts of Danish business, sports and cultural life, measure DK-2020-35/1596 (measures in Denmark), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/DK-2020-35_1596.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.