The Danish government has unveiled a new business scheme designed to streamline the process for companies seeking to attract foreign labor. This initiative seeks to address labor shortages and boost economic growth.

The proposal represents a compromise between various political interests. The Social Democrats secured a provision requiring companies to have a collective agreement in place to utilize the scheme, addressing concerns about social dumping and potentially appeasing trade unions.

Businesses, along with the Liberal Party (Venstre) and the Moderates, achieved a significant reduction in the income threshold, lowering it from 514,000 kroner to 300,000 kroner.

To mitigate integration challenges, the scheme is limited to 16 pre-selected countries with a proven track record of successful integration. This approach acknowledges the importance of origin in addressing potential integration issues.

The introduction of a “positive list” of countries marks a departure from previous reluctance to differentiate between nationalities. While the term “discrimination” is often avoided, varying entry requirements based on nationality have long been a reality.

The need for such a scheme arises from a significant increase in foreign labor in recent years. Between 2013 and 2023, the number of full-time employed foreign workers more than doubled to 309,000, contributing an estimated 300 billion kroner to the economy.

However, this influx of foreign labor has not been without its challenges. Some municipalities have experienced difficulties related to integration. The experiences of guest workers from the 1960s and 70s, many of whom stayed permanently and brought family members, serve as a reminder of potential long-term integration issues.

The debate surrounding immigration policy has often been contentious, with concerns raised about wage pressure and social dumping. Some have also expressed reservations about appearing lax on immigration.