Denmark can live well with a higher debt from the corona crisis

During the corona crisis, Denmark has spent billions of kroner on aid packages, tests and infection tracing.

However, the bill from the corona crisis will not necessarily be a problem for the Danish economy. It writes Dagbladet Børsen.

Both some of the country’s leading economists and Danmarks Nationalbank assess to the newspaper that Denmark can just live on with a slightly higher debt.

“We are in the situation that many years of fiscal discipline have brought government debt far down. So yes, we can live with a higher level of debt and are not vulnerable, «says National Bank Governor Signe Krogstrup to Børsen.

It is not yet clear what the corona crisis will mean for the Danish treasury as a whole.

In a projection from the economic sages, it was estimated in the autumn that the corona crisis would increase the Danish government debt by a total of DKK 200 billion.

Even though it is a lot of money, Danmarks Nationalbank believes that the money has been well spent.

“At the moment, when parts of the economy are underdeveloped due to the risk of infection and restrictions, it makes very good sense for society to increase the debt to support the economy through aid packages,” says Signe Krogstrup.

Børsen has also spoken with current supervisor Carl-Johan Dalgaard and former supervisor Michael Svarer. Nor do they think that the increase in Danish government debt is alarming.

The question of the consequence of the corona bill has been much discussed recently, after Prime Minister Mette Frederiksen (S) in an interview a week ago was asked who should pay for the corona crisis.

“It’s a slightly old-fashioned way of looking at it. Maybe also a slightly traditional, bourgeois way of looking at it. I believe that we in Denmark have the opportunity to invest in the crisis we are in now, “said the Prime Minister.

/ ritzau /

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