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Coronavirus Crisis hitting Denmark’s budget hard in 2020

Christian Wenande
May 6th, 2020


This article is more than 4 years old.

Government expects the public sector balance to be up to 197 billion kroner in the red this year alone

Denmark’s economy will feel the pinch in the next couple of years (photo: Pixabay)

According to the Finance Ministry, Denmark’s bottom line will be hit hard this year due to the ongoing Coronavirus Crisis.

In the new annual convergence report to the EU (here in Danish), the ministry expects the public sector balance to show a significant loss of up 165-197 billion kroner for 2020 – a decrease of 7-9 percent.

Depending on how quickly Denmark’s economy adapts to the crisis, the country is expected to endure another loss in 2021 to the tune of 43-86 billion kroner.

“The many initiatives are aimed at preventing the long-term negative effects of the Coronavirus Crisis on the Danish economy. But we can’t avoid 2020 being a year with significant decline and a public sector suffering a great deficit,” the Finance Ministry wrote.

READ ALSO: Denmark needs 250 billion kroner to tackle coronavirus havoc

Good times over
According to the ministry, the blow to public funding will be the highest since the early 1980s – not even the Financial Crisis of just over ten years ago can compare.

The 100 billion kroner handed out in aid packages due to the current crisis accounts for a big chunk of the loss for 2020.

Denmark’s public sector balance had been going strong in recent years with surpluses in 2017 (33.1 billion kroner), 2018 (10.7 billion kroner) and particularly 2019 (84.9 billion kroner).

A recent report from Nationalbanken suggested that Denmark would need 250 billion kroner to tackle the Coronavirus Crisis.


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A survey carried out by Megafon for TV2 has found that 71 percent of parents have handed over children to daycare in spite of them being sick.

Moreover, 21 percent of those surveyed admitted to medicating their kids with paracetamol, such as Panodil, before sending them to school.

The FOLA parents’ organisation is shocked by the findings.

“I think it is absolutely crazy. It simply cannot be that a child goes to school sick and plays with lots of other children. Then we are faced with the fact that they will infect the whole institution,” said FOLA chair Signe Nielsen.

Pill pushers
At the Børnehuset daycare institution in Silkeborg a meeting was called where parents were implored not to bring their sick children to school.

At Børnehuset there are fears that parents prefer to pack their kids off with a pill without informing teachers.

“We occasionally have children who that they have had a pill for breakfast,” said headteacher Susanne Bødker. “You might think that it is a Panodil more than a vitamin pill, if it is a child who has just been sick, for example.”

Parents sick and tired
Parents, when confronted, often cite pressure at work as a reason for not being able to stay at home with their children.

Many declare that they simply cannot take another day off, as they are afraid of being fired.

Allan Randrup Thomsen, a professor of virology at KU, has heavily criticised the parents’ actions, describing the current situation as a “vicious circle”.

“It promotes the spread of viruses, and it adds momentum to a cycle where parents are pressured by high levels of sick-leave. If they then choose to send the children to daycare while they are still recovering, they keep the epidemic going in daycares, and this in turn puts a greater burden on the parents.”