Danes to get cash payout financed by their own holiday allowance as govt wants to stimulate virus-hit economy

Denmark on Monday announced new initiatives to stimulate the economy including cash handouts as Copenhagen starts to phase out generous aid packages introduced at the beginning of the coronavirus crisis.

The Nordic country was among the first in Europe to shut down in March to curb the coronavirus epidemic. It has also been one of the first to reopen.

The cash payout will be financed by Danes’ own holiday allowance, which had been frozen over a revamp of the holiday pay system. It was originally meant to be paid out as an additional pension when people retire.

Three out of five of the frozen weeks, which Danes have earned themselves, will be paid out before October, amounting to roughly 60 billion Danish crowns ($9.06 billion).