Last Week in Denmark (18.02-25.02) Episode 6 Year 4
CO2 tax on agriculture; New debt collection rules; Rural opportunities
Editor HQ
State of Denmark
“I always had a dream to represent Denmark as a brown person.” (Denmark’s representative to Eurovision, SABA)
Hello everyone. Did you see the first signs of spring? The warmer days, the occasional sun, the flowers… the diversity victory in the Melodi Grand Prix (Denmark’s Eurovision), the good news for the people of Ølst (the town is safe from being buried by the landslide) and the strong support from the people of Denmark for continuing to send weapons and supplies to Ukraine.
In response to strong public support, the government gave Ukraine a 10-year long guarantee for financial and military aid. As we mark the second anniversary of the war, there is talk of war fatigue in our homes. Unfortunately, for the frontline soldiers who have defended Europe these past two years, there is no such luxury. We need to recognize their sacrifice and stay sharp in our support.
Inside our schools, the debate about bullying continues. Considering the sad results of the survey from the previous edition where we asked about racism and xenophobia in schools in which 52% of you had children who had experienced at least some instances, we will dedicate a future edition where we can discuss actions and tools that parents can use to deal with it. The signs from the Ministry of Education are that they will most likely propose tougher sanctions on violent students.
I end this week’s column with a look at another debate that is just getting started - should doctors be allowed to own up to six health clinics? The spotlight has been put on “Alles Lægehus” clinics, where the owner doctor rarely (or never) visits some of the clinics, leaving nurses and doctor assistants to run the show. We will follow-up next week.
Thank you for reading Last Week in Denmark! P.S. - We have a one-month internship open for a Romanian speaker with tasks within project and event management. Write to lastweekdk@gmail.com.
Word of the Week
Landbrug=Agriculture. Words from the same family are - landmand (farmer); gård (farm) and avl (breeding).
Quiz
Danish Politics HQ
Weekly political overview
Enhedslisten (Red-Green Alliance), Radikale Venstre (Social Liberals) and SF (Socialists) want farmers to bear the cost of the green transition in agriculture and are asking for the first model of taxation (750 DKK per ton of emitted CO2) to be introduced.
On the other hand, DD (Populist Nationalists) are completely against a CO2 tax and call the proposals a declaration of war against rural life. The government parties have not taken a position yet, but it is expected they will support models two or three (about which you can read below in the focus section). There will be a tripartite negotiation about the tax in June between farmers associations, green organizations and the government.
Political culture and voter behavior is changing in Denmark. It used to be that people voted the same party their entire life and it was highly likely their children would do the same. However, in the 2022 parliamentary elections, 53% of the people voted differently than in 2019. The greatest percentage change ever. Only 30% of the population still identifies with a certain political party.
Focus
4% salary increase for 110,000 regional public employees: From April 2024, the regional public employees (nurses, SOSUs, health administrators, bioanalysts, social educators, radiographers and midwives) will receive a salary increase, extra parental leave for fathers and the possibility to pool together holidays for a longer vacation. Next year, another salary increase of over 4% is expected.
The regional governments hope that the new collective agreement will make it easier to recruit much-needed healthcare staff.
Doctors and other academics working within the regional governments are not covered by the new collective agreement.
A similar collective agreement has been reached for the 500,000 municipal employees (pedagogues, teachers, elderly care, etc.), with a 4% salary increase from April 2024 and three extra weeks of paternity leave.
Three models on a potential CO2 tax on agriculture: The expert committee tasked with finding a solution to reduce the CO2 emissions within agriculture has proposed three potential models. All three models will help Denmark reach its 2030 climate targets. The question is more about who should bear the cost – the farmers or the taxpayers.
First model of taxation - 750 DKK per CO2 ton emitted. This is the most expensive model for the farmers and it will lead to a significant decline in agricultural activity. CO2 emissions will be reduced by 3.2 million tons until 2030 and is expected to lead to 8000 lost jobs in agriculture (10.2%).
The second model - 375 DKK per CO2 ton emitted. The middle proposal where both the farmers and the state pay for the green transition within agriculture. CO2 emission reductions of 2.8 million tons until 2030 will be obtained via new technologies, resulting in a potential reduction of 4,000 jobs (5.1%).
The third model - 125 DKK per CO2 ton emitted. The most expensive model for the state, as it pays for most of the green transition. CO2 emissions will be reduced by 2.6 million tons until 2030, leading to a reduction of 2,000 jobs (2.6%).
For models two and three to work, the expert committee recommends that financial support be introduced to convince farmers to adopt pyrolysis (in which you can store CO2 in biochar obtained by burning straw and other organic material at a very high heat). On the other hand, the Climate Council says the technology is too early and still controversial.
The expert committee says that a tax on food production is 14 times more effective than a tax on food itself. It is still expected that the price of food will rise. For example, with the first model of taxation, 500g of beef will become 4.5 DKK more expensive, while the price for a liter of milk will increase by 60 øre.
Danish Economics HQ
The business organizations, economic think tanks and the biodiversity association ask the government to introduce a CO2 tax on agriculture: Dansk Erhverv, SMV Danmark, CEPOS, KRAKA, CONCITO and Danmarks Naturfredningsforening argue that farmers should not be exempt from bearing the green transition cost, as the burden should be shared equally.
Agriculture accounts for more than a third of all greenhouse gas emissions in Denmark.
2% economic growth in the last three months of 2023: We ended the year with 1.8% growth compared to 2022. However, without the pharma industry contribution, the economy would have declined by 0.1%.
The municipalities have a Microsoft addiction: In 2023, 98 municipalities spent 538 million DKK on Microsoft products. This marks a 200 million DKK increase since 2018. According to the municipalities, they have no alternatives to Microsoft, as they are the only bidders for the public tenders, each time with a higher price. The Minister of Digitalization calls the dependence on the American tech giant “problematic,” and will come with proposals to reignite market competition.
An expert committee proposed 58 support schemes for businesses to be removed: They have been tasked with reducing the annual business support costs by 2 billion DKK. The experts contend that these schemes do not bring sufficient value to society, and propose their removal to save 2.3 billion DKK. The Ministry of Business will consider the proposals.
Among the proposals - remove the tax exemption for wages earned on Danish ships (1.1 billion DKK); change the rules about immediate depreciation of software, patent rights and know-how (800 million DKK); remove the VAT exemption for funeral homes (65 million DKK); remove the state support for Wonderful Copenhagen and the Foundation for Plant-Based Food (94 million DKK) and many others.
New debt collection rules: Since fall 2023, the Debt Agency (Gældsstyrelsen) has been allowed to seize up to 60% of the net income of people indebted to the state. The percentage amount is influenced by income level and number of children. Those with seized income have 14 days from the moment they’re informed to appeal for a lower percentage.
Entrepreneur’s corner
For Ukrainians who want to start or scale their beauty business: Join the 10-workshop incubator created by Aalborg Institute for Development to learn how you can start or scale your beauty business. Participation is free. Sign up here.
For internationals who want to start their own business in Denmark: Join the 4-workshop course created by Aalborg Institute for Development in Billund to learn step-by-step how you can build your business. Participation is free. Sign up here.
For young people under 41 years old who want a career in farming: You can obtain an establishment grant of 100,000 EUR to start your own farm. Read more here.
Do you have an idea on how to make the food industry more green in Denmark? You can obtain up to 15 million DKK for research and development. Read more here.
Daily Life in Denmark HQ
Insights into the Danish way of life
This week hosts the Copenhagen Bike Show, the largest bicycle trade show in Scandinavia. Coincidentally, the first glimpses of spring have started to show, so if you have sought shelter in public transport during the cold months, it might be a good time to dust off your bike.
Danish cycling history coincides with the invention of the bike itself, and it is arguably the most prominent characteristic of the local culture. Although part of its relevance stems from how flat the country is, the bike is also a symbol of Danish values. Bikes offer equal mobility to members of all social groups, and are therefore inextricably linked to two of the nation's biggest achievements: equality and freedom.
With more than 12,000km cycle routes, nine in ten people in Denmark own a bike and cycle an average of 1.4km per day. In big cities, the numbers are even higher: 1.9km for Aarhus, 2.1km for Odense and 3km for Copenhagen. In terms of development, authorities estimate every kilometer traveled by bike instead of car equals 6 DKK gained in health benefits, as, among other benefits, adults who cycle regularly have 30% lower morbidity. In Copenhagen, citizens request around 1.1 million fewer sick days thanks to cycling.
For the last decade, lower auto prices have decreased cycling in Denmark. In response, the government is currently executing an infrastructure plan of 458 million DKK. In the future, keeping bikes as the leading vehicle will demand hard and active choices from politicians, often to the disadvantage of car drivers. For now, we can rest assured that cycling culture is here to stay.
Explainer
62% of land in Denmark is used by farmers: Globally, only Bangladesh uses a higher percentage. 22% of Danish land is used for production of white meat (pig and poultry). 15% is used for production of red meat and milk (cattle, horses and sheep). 18% is used for cereals (wheat, rye, oats, barley, rapeseed) meant for oil and other productions, and 7% is used for organic farming, mainly organic beef and milk. Only 14% of Denmark’s land is used for villages, towns, cities and infrastructure.
There are 32,000 farms in Denmark with 73,000 employees. If you look at the entire food industry, there are 112,000 employees (3.9% of total employment). 25% of the workers are internationals.
Agriculture exports are worth 16 billion DKK yearly, while the entire food industry exports are worth 101 billion DKK yearly (11.1% of total exports).
Agriculture contributes to 2% of Denmark’s GDP. 100 years ago it accounted for 20% of GDP.
Denmark is the country with the highest ratio of pigs to humans. We have 13.4 million pigs - more than two pigs per person.
Who or what pays the price for being such an agriculturally intensive country? Biodiversity. We have 35,000 species of plants, animals and mushrooms, of which 95% are in strong or moderate danger of extinction. In the European Union, only Belgium has a worse situation.
Weekly overview
MobilePay will no longer be offered as a payment option at Meny, Spar, Min Købmand and Let-Køb supermarkets, its parent company Dagrofa announced. Finans reported that the company’s decision was due to MobilePay’s requirement for stores to upgrade their equipment to facilitate the option at stores moving forward. Supermarket chain Løvberg will also stop offering MobilePay, citing increased costs. In contrast, Rema 1000 will continue to support MobilePay for its customers despite the changes.
20 cases of parrot disease, a respiratory infection, have been identified in just two months in Denmark, surpassing the typical annual range of 10-30 cases. The Statens Serum Institut (SSI) said that the disease, caused by the bacterium Chlamydia psittaci, is primarily spread by wild birds like garden blackbirds and sparrows. Transmission occurs through exposure to their feces, which can become airborne and inhaled. While symptoms of parrot disease are often mild or nonexistent, in severe cases it can lead to pneumonia, particularly in those with weakened immune systems. SSI is investigating the source of the outbreak as it is still unknown, TV2 reported.
Soak your rice between 15 and 30 minutes before cooking or cook it with extra water that you can remove later, the Danish Veterinary and Food Administration advised. Why? The agency has disclosed that rice contains higher levels of the potentially carcinogenic substance known as inorganic arsenic, as revealed by new risk assessments conducted by the European Food Safety Authority. To mitigate this risk, the agency has recommended soaking rice in addition to rinsing it, to reduce the amount of the substance consumed. Inorganic arsenic is usually found in soil, sediments and groundwater and it can pose health risks when consumed in large quantities, particularly to children.
Online theory tests for obtaining a Danish driver’s license will soon be rolled out at 50 test locations across Denmark. Currently offered at 15 locations, the new digital format will slowly phase out the analog version, but will still contain 25 questions, Ritzau reported. The digital format will also allow learners to revisit questions and proceed at their own pace. The theory test is available only in Danish and English, but there are plans to make it available in German, Greenlandic and Faroese.
Popular Chinese marketplace app Temu is in hot water again as toys bought from the site pose serious health risks to children. In a report released by Toy Industries Europe (TIE), 95% of toys bought and assessed by the association broke EU safety rules. Playing with the rattles, bath toys and plushies can lead to danger. Hazards include cutting, blockage, choking, strangulation, puncturing and chemical danger. Though Temu responded to the report by removing the toys from its platform, both TIE and the Danish Consumer Council strictly advise shoppers to be wary of purchasing from the site. According to Dansk Erherv, Temu is the fourth most popular foreign online store in Denmark as of last year.
Internationals in Denmark
60.4% of the Ukrainian refugees would like to stay in Denmark: A report made by University of Copenhagen shows that the large majority of the Ukrainian refugees would like to stay in Denmark after the war is over. 43.8% have lost relatives in the war so far and 24.4% have PTSD symptoms.
European Union HQ
Rights
If you work in agriculture in Denmark, you should consider being a member of the 3F trade union. The minimum salary on collective agreement contracts is 149 DKK/hour according to Jobpatruljen.dk. If you want to become a farmer, you can go to the 3F school for farmers.
Opportunities
If you live outside the big four cities in Denmark, you might be able to access rural development funds for business ideas: To find your local opportunities, Google LAG and the name of your municipality (example: “LAG Himmerland”). They provide 50% of the funding you need to start or scale a small business in your rural area. What’s different from other funding? It can be used for operational costs like salaries and for direct investments in assets.
Announcement Board
Aalborg, February 27, 14:00-15:45: Job Search Seminar – For international job seekers in North Denmark. If you could use some practical guidance on how to successfully search for a job, register here.
Esbjerg, February 29, 16:30: Harnessing Cultural Diversity – Seminar about cultural differences, with a focus on cooperation, relations, building trust and communication across cultures in a work related context. Places are limited, sign up ahead.
Online, February 29, 17:00: Pregnancy and Birth in Denmark – Are you planning for or about to have a baby? Then join this webinar about pregnancy and childbirth in Denmark.
International media about Denmark HQ
Denmark will send its ‘entire artillery’ to Ukraine (Euractiv)
Last Week in Denmark’s Universe
Read long-form articles on our website: How to learn Danish; Danish Business Culture; How to invest in Denmark; Guides for non-Europeans - I and II; How to negotiate your salary; Giving birth in Denmark - I and II; Pension in Denmark - I and II; Translator in Denmark and many other untold stories from the community.
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I see you don’t have a French version. Happy to lead it. Let me know!