The Week That Was, March 16th – March 22nd 2020

Coronavirus / What happened last week:

The state’s financial aid packages for business presented last week will cost more than DKK100bn but Denmark can afford it according to one of the country’s leading economists –  Professor Nina Smith, a former ‘wise man’ of economy, said the Danish economy is one of the strongest in Europe so is more than capable of supporting the various emergency measures put in place by the government.

The National Bank said the government is borrowing an extra DKK50bn (€6.6bn) in 2020 to fund the emergency measures aimed at sustaining the economy through the virus crisis.

Dealing with the coronavirus pandemic has forced the government to sideline all its major political initiatives this Spring, such as social balance reform, climate negotiations, and the prime minister’s promise of early retirement for elderly ‘worn out’ workers.

Social Liberal leader Morten Østergaard stepped back from his threat to topple the government if there’s no agreement on a climate action plan before June 5th – after parliament passed the historic financial aid package for the business sector, Thursday, he said that in light of the corona epidemic  he could be prepared to postpone the deadline.

Health Minister Magnus Heunicke warned that even if the coronavirus dies off before summer, as predicted by most experts, there could be a ’second wave’ this autumn – Mr Heunicke became the most powerful Danish health minister ever, Tuesday, after parliament passed the new emergency epidemy bill giving him wide-reaching powers to contain the virus.

Jens Lundgren, professor of infectious diseases at the National Hospital (Rigshospitalet) warned that up to 300,000 people in this country could be infected over the next six weeks before the virus peaks in May.

A new report by the National Serum Institute (SSI) showed that Denmark has overtaken Austria as the main source of coronavirus infections in this country.

A ban on groups of more than 10 people came into effect – transgressors will be fined DKK1,500 (€200). Shops, cafes, restaurants and small businesses that fail to close down will be fined DKK5,000

More than 17,000 people joined the employment queue as the coronavirus started to impact the economy.

Danish consumers’ spending habits have changed radically since the coronavirus outbreak – based on Mobilepay cash transfer data, Danske Bank reported how spending in supermarkets has doubled but declined dramatically in restaurants, hotels, transport, and non-food goods.

Foreign Affairs/EU:

Denmark’s European Competition and Digital Commissioner Margrethe Vestager presented legislation that will allow European governments to grant up to €800,000 ($853,400) to help companies cope with ‘urgent liquidity needs.’

Denmark has closed its borders but they remain open for asylum seekers – Louise Holck, Deputy Executive Director of the Danish Institute for Human Rights, told Berlingske: “Denmark can’t just close the borders for asylum seekers because of the Dublin Convention that requires us to process them access so they can be assessed as to which country is responsible for processing their asylum application.”

The Foreign Ministers of Sweden, Denmark, Finland, Iceland, Lithuania, Latvia and Estonia and the State Secretary of Norway discussed the response to the corona virus crisis in a video conference, Monday

Greenland halted all all non-emergency air traffic after reporting its first case of COVID-19.

Business:

Finance Minister Nicolas Wammen said the Danish state is prepared to do ‘whatever’s necessary’ to ensure Scandinavian Airlines (SAS) survives the coronavirus crisis, after the Swedish and Danish governments offered credit guarantees worth billions of kronor to the struggling airline – SAS has already temporarily laid off up to 10,000 employees, or 90% of its total workforce

Copenhagen Airport (CPH) put its investment plans on hold as part of a cost cutting programme designed to help it see out the coronavirus crisis.

A.P. Moller – Maersk, the world’s largest container line, suspended crew changes for four weeks for all of its operated ships amid the coronavirus pandemic.

Danish toy giant Lego is closing all of its stores worldwide until at least March 27 – except in China.

The National Bank raised its key interest rate by 0.15% to minus 0.6%, Thursday, in a surprise move to ease downward pressure on the Danish crown, which is pegged to the euro.

Danske Bank will stop charging negative interest rates to thousands of small business clients as part of a raft of measures intended to stem the fallout of the coronavirus through the economy.

And That Was the Week That Was, March 16th – March 22nd 2020: To read all the above articles in full see: http://seven59.dk/archive (subscription required).