Economic expert group to advise on bailout packages

The economic expert group, which was appointed by the Ministry of Finance to advice on the economic consequences of reopening Danish society, has now been asked to intervene again. The government wants the experts’ advise on how to phase out the financial bailout packages which are at present ensuring the survival of those parts of the business and industry which are particularly hard hit by the corona crisis. The expert group consists of professors of economics Torben M. Andersen (chair), Michael Svarer and Philipp Schröder from Aarhus BSS.

Making a clear plan for how to phase out the bailout packages was one of the recommendations that the professors of economics made to the government in their report on the reopening. The bailout packages are expensive and concurrently with the society gradually opening up again, the bailout packages will also have to be phased out.

In order to find the best solution, the experts have, among other things, been asked to compare bailout packages in other countries, look at models for phasing out bailout packages that support jobs, find the fastest way to make sound companies stand on their own feet again, as well as look at the possibilities for continued support to i.e. seasonal activities.

“The input of the expert group must be based on a socio-economic perspective that will take into account, i.e. the short and long-term effect on the public finances as well as the long-term effect on Danish business and industry, Danish employees and unemployed people” it is stated in the terms of reference for economic expert assessment of the phasing out of the bailout packages.

The recommendations of the expert group must be ready for publication on 24 May 2020.

The expert group consists of:

• Professor of economics Torben M. Andersen (chair)
• Professor of economics Michael Svarer
• Professor of economics Philipp Schröder

Further reading:

Danish government to consult group of economic experts