After Early Shutdown, Denmark May Soon Start Road Back to Normal
Denmark Raises Wage Compensation Scheme Ceiling Amid High Demand
(Bloomberg) --
It was one the first European countries to impose severe social restrictions in its fight against the coronavirus. Now, Denmark may be ready to start opening up corners of its economy after Easter.
“If we keep standing together by staying apart, and if the numbers remain stable for the next two weeks, then the government will begin a gradual, quiet and controlled opening of our society again on the other side of Easter,” Prime Minister Mette Frederiksen told reporters in Copenhagen on Monday.
Denmark announced a shut down of schools, non-essential private businesses and much of the public sector on March 11, when the number of confirmed cases of coronavirus in the country totaled only a few hundred. There are now 2,577 confirmed Danish cases and 77 related deaths, and government experts say its spread is expected to peak in mid-April.
“We are seeing signs that we have succeeded in slowing the spread in Denmark,” Frederiksen said, adding that the government hopes to publish more details on a gradual re-opening later this week. The prime minister said her administration was unable to calculate how much the lockdown would cost, but promised to support the economy even beyond the current crisis.
Earlier Monday, Finance Minister Nicolai Wammen said the government was raising the ceiling of its wage compensation program for affected businesses to 30,000 kroner ($4,400) per month. The decision, which was agreed with trade unions and business leaders, will hopefully help avoid “tens of thousands of layoffs,” Wammen said.
More than 11,000 companies have applied for the government’s wage compensation scheme since it was introduced on March 14 and which sees the state fund 75% of employees’ salaries and 90% of earnings for those who work on an hourly basis.
Read more: Danish Companies Rush to Apply for Wage Compensation Program
©2020 Bloomberg L.P.