Buisness, competition and growth

Business, competition & growth

A functional business environment with a fair competition is the foundation for growth and the creation of jobs in the private sector. An essential task is to create an environment, which allows the firms to thrive and competition to flourish. This requires an efficiently designed tax and regulatory system, with a focus on creating the optimal conditions for the companies to compete and innovate.

Cases

Economic consequences of the Fehmarn Belt fixed link - Summary

Stagnated traffic development, lower EU-support, and other changed preconditions are challenging the profitability of the Fehmarn Belt tunnel. 

 

The Danish parliament has decided to construct an undersea tunnel in the Fehmarn Belt. A key prerequisite for this decision was that the entire Fehmarn-project is paid solely by the future users of the tunnel and therefore not by the Danish taxpayers. However, our analysis of the implications of traffic development, lower EU-support, and other changed preconditions of the project, makes us conclude that the economic case of the project can no longer be characterized as solid.   

 

Calculating the economic implications of the lower traffic and thus lower expected revenue from road tolls together with the lower financial support from the European Union, we find that the project can be expected to generate a loss of around 3 billion DKK (in 2014-prices). The Fehmarn-project will generate a loss of around 32 billion DKK (2014-prices) if the expected prices for cars and lorries are adjusted downward similarly to what was decided on the Oresund Bridge after its opening.

 

Scandlines

Economic consequences of the Fehmarn Belt fixed link

Stagnated traffic development, lower EU-support, and other changed preconditions are challenging the profitability of the Fehmarn Belt tunnel. 

 

The Danish parliament has decided to construct an undersea tunnel in the Fehmarn Belt. A key prerequisite for this decision was that the entire Fehmarn-project is paid solely by the future users of the tunnel and therefore not by the Danish taxpayers. However, our analysis of the implications of traffic development, lower EU-support, and other changed preconditions of the project, makes us conclude that the economic case of the project can no longer be characterized as solid.   

 

Calculating the economic implications of the lower traffic and thus lower expected revenue from road tolls together with the lower financial support from the European Union, we find that the project can be expected to generate a loss of around 3 billion DKK (in 2014-prices). The Fehmarn-project will generate a loss of around 32 billion DKK (2014-prices) if the expected prices for cars and lorries are adjusted downward similarly to what was decided on the Oresund Bridge after its opening.

 

Scandlines

Market analysis for the plumbing and electrician industry

Plumbing and electricity companies have been performing well for many years, and the employment was in 2019 on a record high level.

 

The plumbing and electricity companies are performing well. That is the overall conclusion of the new report Kraka Advisory made for TEKNIQ Arbejdsgiverne. In this report, we analysed the general state of the Danish economy, along with the production and labour market for plumbers and electricians. Since 2013 the industry has seen high growth rates in revenue and employment, with the unemployment rate decreasing to a point that it could hinder continued growth in the sector. The positive trends for revenue and employment continued in 2019, but at a slower pace. The slower pace might be something the industry will have to get used to in coming years, as construction is projected to slow down in the coming years, and as the crisis following the Coronavirus creates an uncertain future for the companies.

 

Tekniq Arbejdsgiverne

 

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