Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure NO-2021-9/1932 – measures in Norway
|Country||Norway , applies nationwide|
|Time period||Open ended, started on 25 February 2021|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Direct subsidies (full or partial)
|Author||Aasmund Arup Seip, FAFO and Eurofound|
|Measure added||05 July 2021 (updated 16 July 2021)|
Due to the COVID-19 pandemic, the Norwegian authorities has imposed a series of national and local restrictions, which has significantly impeding economic activity. The impact of the crisis has been different for different local communities and sectors across Norway. The Norwegian authorities therefore proposed a municipal compensation scheme in order to improve the liquidity of undertakings in municipalities hit by the COVID-19 pandemic. The measure shall, in particular, remedy the situation of local undertakings that are affected by local or national infection control measures or the economic recession following from the pandemic.
The outbreak of the COVID-19 pandemic, combined with subsequent stringent restrictive measures, has resulted in increased costs, loss of customers and large revenue losses, which in turn has led to an extraordinary liquidity situation for undertakings in many sectors. The crisis has dramatic consequences for many sectors, but the impact varies between municipalities and sectors.
The municipal compensation scheme aims at ensuring access to liquidity, by means of direct grants, for undertakings facing a sudden shortage or unavailability of liquidity due to the impact on the economy of the COVID-19 pandemic. The measure shall remedy the situation of local undertakings that are particularly affected by local or national infection control measures or the economic recession following from the COVID-19 pandemic.
The measure is funded through a budget allocation from the Government to the municipalities, which enables them to aid local undertakings. The municipalities may choose different ways, under the compensation scheme, to aid undertakings. These funds will remedy the situation for undertakings according to local needs not covered by national schemes. These needs vary from municipality to municipality.
The Ministry of Local Government and Modernisation is the authority responsible for the measure and for defining the framework within which the municipalities may adapt and prioritise local schemes. Aid under the measure may be granted to undertakings, or an entity within an undertaking, with their registered address within the municipality border, or to regional tourist boards and destination management organisations. Undertakings of all sizes can be eligible.
The municipal compensation scheme has by June 2021 been allocated NOK 2,500 million (€245 million).
|Does not apply to workers||Applies to all businesses||Does not apply to citizens|
Local / regional government
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:
Social partners involvement is unknown. Social partners may have had informal dialogue with government or/and members of parliament.
The social partners are supportive of the measure.
Eurofound (2021), Umbrella scheme for liquidity support for undertakings in municipalities, measure NO-2021-9/1932 (measures in Norway), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/NO-2021-9_1932.html
30 January 2023
Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. This article summarises the policy responses as reported in Eurofound's EU PolicyWatch database from January to September 2022.Article
12 September 2022
Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.Article
12 September 2022
This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.Article
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.