Factsheet for case DK-2020-35/1596 – Updated – measures in Denmark
|Country||Denmark , applies nationwide|
|Time period||Temporary, 28 August 2020 – 30 September 2021|
|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|
|Case created||11 December 2020 (updated 11 May 2021)|
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.
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.
|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, case DK-2020-35/1596 (measures in Denmark), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.