The government and the Danish People's Party have concluded a political agreement concerning a strengthened and simpler promotion of trade and industry with strong municipal anchoring.

In April 2018, Forenklingsudvalget for Erhvervsfremme presented a number of recommendations for a new model promoting trade and industry which will strengthen Danish businesses and ensure growth and employment.

Based on the committee’s recommendations, the Government initiated political discussions on the future model. The Government and Danish People's Party have now reached a common understanding as to how the promotion of trade and industry must be arranged.

In general, Danish businesses will experience a simpler system with higher quality in relation to services and with the municipalities playing a key role.

THE MAIN ELEMENTS OF THE POLITICAL AGREEMENT BETWEEN THE GOVERNMENT AND THE DANISH PEOPLE'S PARTY

New organisation

The organisation of the system to promote trade and industry should be fundamentally changed. The three politically responsible levels (the municipalities, the regions and the state) should be reduced to two levels - one decentralised level with a strong municipal anchoring and one state level.

State promotion

The purpose of gathering all state assignments and simplifying the schemes is to gather the access to the state promotion of trade and industry. The six regional growth fora and the Danish Growth Council are replaced by Danmarks Erhvervsfremmebestyrelse. In addition, a number of the present arrangements will be phased out. The highly specialised arrangements will be gathered under the state - for instance internationalisation, capital intermediation and innovation.

Erhvervsfremmebestyrelsen will also play an important role in the decentralised promotion of trade and industry. For instance, the board is to distribute a part of the national funds to local efforts. Erhvervsfremmebestyrelsen will also be responsible for a strategy concerning the decentralised promotion of trade and industry with contributions from the business centre.

The municipalities’ key role

The municipalities will play a key role in the new system. The municipalities will still be the companies’ local central point.

Seven inter-municipal business centres and five branches are to be established. The business centres are to act as strong competence centres offering services such as industrial management and development to all businesses. Further, these will function as the businesses’ local access to the system promoting trade and industry. At the business centres, the businesses will get advice and guidance which may help them proceed with their promotion work.

The municipalities may still promote trade within the municipality. If the work crosses the municipal border, it must be in accordance with the aggregate decentralised strategy.

Digital platform

The businesses will get access to information, guidance and digitalised services concerning start-up, operation and development, etc. on a new digital platform, which will be operated as a common public digital access to promotion of trade and industry.

Promotion of tourism

The municipal promotion of tourism will be consolidated in 15-25 destination companies responsible for the local promotion. With this initiative, promotion of tourism should to a higher degree take place in cooperation with more municipalities so that these may jointly lift their central roles in relation to the development of strong and attractive destinations in Denmark.

At the same time, more specialised competencies will be maintained and made available at national level. For instance, Wonderful Copenhagen and Dansk Erhvervs- og Mødeturisme. The aim is also to increase the coordination and possibility of achieving synergies between these organisations.

A destination development pool will be established under Danmarks Erhvervsfremmebestyrelse so that destination companies may apply for funds to local and cross-sectoral projects.

The further procedure concerning consolidation will be agreed between the government and the Danish People’s Party, and it will be for the municipalities to agree on common destination companies within this framework before the end of 2020.


contacts

Rikke Søgaard Berth

Partner

Line Markert

Partner

Malene Graff

Senior Attorney