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Factsheet for case DK-2020-35/1596 Updated – measures in Denmark

COVID-19. Better conditions for particularly hard hit parts of Danish business, sports and cultural life

COVID-19. Bedre vilkår til særligt hårdt ramte dele af dansk erhvervs-, idræts- og kulturliv

Country Denmark , applies nationwide
Time period Temporary, 28 August 2020 – 30 September 2021
Type Legislations or other statutory regulations
Category 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)

Background information

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.

Content of measure

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:

  • Prohibition against being open
  • Assembly ban for more than 500 people
  • Border closures
  • Travel guidelines of the Ministry of Foreign Affairs.

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:

  1. Access to compensation for fixed costs to suppliers to forcibly closed companies, and to self-employed either forcibly closed or affected by ban on assembly
  2. Prolongation of compensation to organisers/planners of larger events, arrangements and exhibition due to ban of assembly
  3. Continuation of compensation schemes for self-employed, freelancers and artists with both A and B income that are severely affected by the ban on assembly
  4. Continuation of compensation scheme for cultural and sports life
  5. Funds earmarked to support transition of Danish trade and industry

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.

Updates

The following updates to this measure have been made after it came into effect.

15 March 2021

In spring 2021 the compensation scheme for for self-employed, freelancers and artists was extended to 31 March 2021. For larger cultural and sport activities/arrangements (350+ attendants) the compensation scheme was extended to 30 September 2021, as it is still unclear whether these events that normally are in summer, will be able to take place despite vaccinations.

Use of measure

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.

Target groups

Workers Businesses Citizens
Applies to all workers Solo-self-employed
Sector specific set of companies
SMEs
One person or microenterprises
Does not apply to citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Informed Informed
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: Unknown

Involvement

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.

Views and reactions

The social partners on both side agree to the background and content of the support measure.

Sectors and occupations

    • 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.

Sources

  • 28 August 2020: Aftale mellem regeringen (Socialdemokratiet), Venstre, Radikale Venstre, Socialistisk Folkeparti, Konservative og Alternativet om Bedre vilkår til særligt hårdt ramte dele af dansk erhvervs-, idræts- og kulturliv
  • 15 March 2021: Aftale om videreførelse af arrangørordningen og nødpulje til store velgørende festivaler (slks.dk)
  • 28 April 2021: Ordninger til selvstændige kunstnere og freelancere (slks.dk)

Citation

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.