“Nothing is so bad that it isn’t good for something,” goes an old Danish proverb. And looking at the economy and employment, things aren’t going well in Germany. With unemployment expected to hit six percent this year and a recession fully underway, Europe’s economic engine has shifted into low gear. But how could this be beneficial?
A different picture in Denmark
The situation in Denmark is quite the opposite. Employment continues to rise to the point where it’s now more common than not for new workers to come from outside Denmark. There simply isn’t enough available, qualified local labor.
It thus seems obvious that Danish businesses could employ German job seekers. In turn, unemployed Germans could help Danish companies keep their production going.
Of course, it wouldn’t be that simple. You can’t just send unemployed people from Schleswig-Holstein on a ferry to Lolland to work as electricians, plumbers, chefs, or waiters on Lolland-Falster or South Zealand.
Three barriers to Baltic commuting
The first and most immediate barrier is the ferry. Two hours of daily transportation, which isn’t cheap either, can put a damper on the desire to become a Baltic commuter.
The second problem is technical and bureaucratic. Different tax and labor market rules between Germany and Denmark create hurdles for cross-border employment.
Finally, an unemployed person is not just any unemployed person — not even in Germany. In Schleswig-Holstein, employers in the hotel and restaurant sectors have expressed concern that skilled and unskilled workers are moving to Denmark due to higher wages. This will hurt the tourism industry in the state, which is already struggling to find workers.
It’s well-known that one man’s loss is another man’s gain, but Danish companies taking food off the table of German businesses won’t help with regional integration across the Fehmarn Belt.
Barriers are coming down
The ferry barrier is already coming down, as can be seen on the Fehmarn project. There is also willingness to address bureaucratic hurdles. This is evident from a meeting between the mayor of Lolland, the chair of the Region Zealand council, and Schleswig-Holstein’s Minister of Economy in early April to discuss regional integration.
The next natural step is for these discussions to take place between the Danish government and the German federal government, ensuring it goes beyond mere talk.