COVID-19 - The government and all the parliamentary parties agree on a comprehensive aid package for the Danish economy.

The government and all the parliamentary parties agree on a comprehensive aid package for the Danish economy.

The government and all the parties of the Folketing have agreed on a significant aid package to sustain Danish economy and to help Danish employees, students and companies through a difficult time.

All parties in Parliament support the government's commitment to use all the necessary tools to secure the Danish economy in the extraordinary situation Denmark is in.

The government and the parties have therefore agreed on the following temporary compensation plans:

Compensation plan for self-employed persons. The self-employed are not directly covered by the tripartite wage compensation agreement, although they may also be challenged on their livelihoods. The Government and the parties of the Folketing will therefore ensure compensation to the self-employed, who experience large declines in their turnover.

Compensation for corporate fixed expenses. The tripartite wage compensation agreement provided increased security for employees' jobs, and the companies received substantial support for their labor costs. The government and the parties of Parliament now also agree to cover some of the fixed costs that the companies no longer have earnings to cover.

In addition, the government and the parties agree on a number of other actions:

Increased access to export credit. In order to help especially small and medium-sized Danish export companies, a new liquidity guarantee is created in EKF - Danmarks Eksportkredit. It will pave the way for new loans of DKK 1.25 billion for the benefit of small and medium-sized export companies.

Increased framework for government guaranteed loan schemes. The framework for government-guaranteed loan schemes for large as well as for small and medium-sized enterprises is increased. For large companies, the guarantee framework is raised to a total of 25 billion, while for small and medium-sized enterprises, a total guarantee framework of DKK 17.5 billion is set aside and an associated loss limit of approx. 5 billion. This will facilitate loans of up to DKK 25 billion.

Public procurement must support businesses. Public procurement must help support the companies - and thus the employees - get through the crisis well. The parties to the agreement agree that this will apply in the state, and the government will enter into a dialogue with KL and the Danish Regions on the possibilities for similar handling in municipalities and regions.

State guarantee for the Travel Guarantee Fund. To help travel companies get through this extraordinary crisis, the government and the parties to the agreement have agreed to strengthen the Travel Guarantee Fund with a state guarantee of DKK 1.5 billion.

Increased access to unemployment benefits and sickness benefits. In order to mitigate the negative consequences that the spread of COVID-19 can have on beneficiaries and sickness benefit recipients, the contracting parties agree to provide more lenient terms for benefit recipients and sickness benefit recipients in the coming temporary period.

Increased loan opportunities for students. Some students in higher education will lose their jobs as a result of COVID-19. Therefore, students and pupils at the youth education programs now have the right to borrow extra SU loans for up to DKK 6,388 per month in addition to the current scholarship and SU loan options.

This text above is a translation in English of the information published on this website:

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