As coronavirus slowly spreads all over the world, countries are doing their best to take control of the pandemic by applying appropriate and in some cases strict measures to tackle the vast impact of the coronavirus outbreak. Most have considered making their state aid rules more flexible in order to cushion business from coronavirus impact.
One of these countries is Denmark.
On March 10th, 2020, Danish Danish Prime Minister Mette Frederiksen and Minister of Health Magnus Heunicke held a press briefing on the novel coronavirus Covid-19 situation and introduced a new economic measure to help the private companies struggling to survive during these dangerous and stressful times.
Denmark’s government announced that they are planning to pay employees in the private sector up to 75% of their salary if the companies promised not to cut their staff.
“If there’s a big drop in activity, and production is halted, we understand the need to send home employees. But we ask you: Don’t fire them,” Prime Minister Mette Frederiksen said during a news conference on Sunday.
The decision was the result of an agreement between the government, the employee Unions and the employer’s organizations.
The aid period will last from the 9th of March to the 9th of June. The country offered to pay 75% of employee’s salaries at a maximum of 23,000 Danish crowns ($3,418) per month. The remaining 25% of the salary will be left for the employers to compensate.
“Extraordinary circumstances call for extraordinary measures,” said the president of the Danish Confederation of Unions Lizette Risgaard.
So far, the country has 898 infected and 4 deaths that are linked to the Coronavirus.