Denmark announces new coronavirus relief for businesses and culture

Denmark announces new coronavirus relief for businesses and culture
Business minister Simon Kollerup announces a new relief package for business and culture. Photo: Philip Davali/Ritzau Scanpix
A broad group of parliamentary parties on Tuesday evening reached agreement on an eight-billion kroner stimulus package to help Danish businesses and cultural institutions hit by the coronavirus crisis.

The financial package also includes a liquidity fund totalling 28 million kroner and extends and expands existing measures.

The support programmes are in place until January 31st 2021.

“I am very pleased that we this evening have been able to agree on a broadly-supported political deal with many of parliament’s parties. It is a deal worth a total of 8.2 billion kroner for Danish businesses and culture,” business minister Simon Kollerup said at a briefing.

A cross-aisle group of political parties – the opposition Liberals (Venstre) and Conservative parties, and government allies the Social Liberals and Red Green Alliance have all put their weight behind the deal, along with the governing Social Democrats.

“The arrangements we have agreed on here tonight are arrangements that will be valid until January 31st, as long as there are still restrictions. That way, we create more of a long-term outlook. And Danish companies will know what to expect,” Kollerup said.

Prime Minister Mette Frederiksen last week signalled new measures would be taken to assist businesses when announcing renewed coronavirus restrictions in Denmark.

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The provisions have been extended to include businesses such as taxi companies, cinemas, public education institutions and conference centres which may can feel a secondary impact of coronavirus-related restrictions, Ritzau writes.

Financial relief is available to cultural entities, sports clubs and associations as well as businesses.

Compensation for overheads is to be extended, meaning the threshold for applying for the relief will be reduced to a loss of 30 percent of normal turnover, having previously been set at 35 percent.

The maximum compensation for small businesses will be increased to 90 percent.


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