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European Union

European Commission Approves Denmark's Export and Investment Fund

Strategic Insights

— 1 min read

The European Commission has approved the establishment of Denmark's Export and Investment Fund, with an estimated value of over €4 billion. The Fund aims to support economic development, competitiveness, innovation, and growth for Danish companies, particularly in the area of green and sustainable finance. The Commission assessed the measure under EU State aid rules and found it to be necessary and proportionate to improve access to finance for sectors or companies that have difficulties in obtaining sufficient finance from the market.

Key Takeaways:

  • The Danish Export and Investment Fund will have an estimated value of over €4 billion and will be established as a new, fully State-owned entity gathering three existing State-owned entities.
  • The Fund will provide funding to small and medium-sized companies, particularly in the field of green and sustainable finance, which is a key concern to all three existing entities.
  • The Commission assessed the measure under EU State aid rules, Article 107(3)(c) of the Treaty on the Functioning of the European Union, which allows State aid to facilitate the development of certain economic activities or of certain economic areas.
  • The measure was found to facilitate the development of certain economic activities in various sectors facing difficulties in obtaining sufficient finance in the market.
  • The funding activities will be subject to measures ensuring that private investors are not crowded out, should they be willing to provide financing to companies.
  • The Commission approved the Fund's activities until 30 April 2030, requiring any further prolongation to be notified and reviewed for approval.

Statistics:

  • Estimated value of the Fund: over €4 billion.
  • Initial capital of the Fund: up to €807 million (DKK 6 billion).
  • Contribution in kind of the three existing State-owned entities: €3.3 billion (DKK 24.8 billion).
  • Capital injection of the Fund: up to €807 million (DKK 6 billion).
  • State guarantees valued approximately: €1.3 million (DKK 10 million) per year.
  • Estimated average value of the exemption from corporate income tax: €38.6 million (DKK 287 million) per year.

Sources:

  • European Commission. (2023, May 12). IP/23/2687: State aid: Commission approves Denmark's Export and Investment Fund. Retrieved from
  • European Commission. (n.d.). State aid register (SA.105087). Retrieved from

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