The new growth plan is the second of its kind within a year, and underlines the Danish government’s commitment to maintain and enhance a strong business environment with good framework conditions as a key tool to ensure economic growth.
Director of Invest in Denmark, Susanne Hyldelund, explains:
- “This new growth plan is yet another step in an ongoing process of improving competitiveness and generating growth to the benefit of both businesses and the Danish people. Denmark is already ranked as one of the best countries in the world for doing business, and these new initiatives will make Denmark an even more attractive business destination. I therefore hope to see more international companies seize the opportunity to grow their business here in Denmark.”
The growth plan implements recommendations from a productivity commission that was initiated by the Danish government as part of the overall growth agenda. With the title ’Denmark all the way out of the crisis – Companies in Growth’ and a budget of DKK 10 billion (approx. USD 1.87 billion), the overall mission is to raise competitiveness by making it more cost efficient to run a business in Denmark and easier to recruit skilled workers from both Denmark and abroad.
The four key areas aimed at making it cheaper and easier to create jobs are:
1. Making it easier and cheaper to run a company, including a DKK 5.8 billion easing of the Public Service Obligations (PSO) tax that companies pay for energy consumption.
2. Better access to financing options including discounts for contributions into small companies and an easing of dividend taxation for companies. The growth and export loan initiatives are moreover extended.
3. Lower prices for consumers and companies by making the utility industry more efficient. In addition, more homogeneous national standards for the construction sector and improved competition in the private service sector.
4. More highly skilled workers and more advanced production through improved international recruitment, better adult education, more internships and more research.
The growth plan launched last year had a budget of DKK 75 billion and introduced a lowering of the corporate tax level to 22% by 2016.