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August 27th, 2013

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Budget initiatives expected to secure growth
A day after downgrading its 2013 economic growth forecast, the government will announce today that it expects growth in 2014 to reach 1.6 percent. The announcement will be made in connection with the presentation of the government’s proposed budget for next year. The budget is reported to contain a three billion kroner increase in public investments, which the government says will help add an additional 15,000 new private sector jobs next year. – DR Nyheder 

A full update on the 2014 budget will be available on cphpost.dk later today. 

Second builder collapses
Less than a month after analysts predicted the economy had seen the last of the big bankruptcies due to the current recession, the nation’s largest building firm, Pihl & Søn, has announced it will cease operations. As many as 1,000 employees could lose their jobs. The firm had been responsible for some of the country’s most recognisable structures, and was leading renovation of Copenhagen’s Nørreport Station. The company’s board said a rapid expansion abroad that saw it enter into low-profit, high risk contracts, proved fatal. Banedanmark, the national railway infrastructure firm, said it expected construction at Nørreport Station to be completed as planned. Other projects Phil was involved in could experience significant delays and additional costs. – Berlingske Business

SEE ALSO: Cyclists to get a break as Nørreport renovation enters new phase

State lawyer’s prices come under scrutiny
The law firm that provides legal services to the state is coming under criticism again for the amount it charges for its services. The latest round of accusations comes after the firm, Paul Schmith, lost a case heard by both the High Court and the Supreme Court, yet charged the state three times as much as the plaintiff’s lawyers. In return for being granted the sole right to provide legal assistance to the state, the firm, known as the Kammeradvokat, is required to offer a one-third discount. The Kammeradvokat defended its fee in the case in question, arguing that its precedent-setting nature had required significant preparation. – Politiken 

Cracked bank’s investors to sue over lack of information
A group of investors in the collapsed Amagerbanken is seeking 898 million kroner in compensation from the state after it has been revealed that financial services authority Finanstilsynet had been alerted to the bank’s problems just months before going bankrupt. The investors claim Finanstilsynet had been informed in writing by Finansiel Stablitiet, a state company responsible for liquidating ailing banks, that Amagerbanken would need to increase the amount of its write downs, yet Finanstilsynet did not inform them of the concern. The investors argue that had they been aware of the problem, they could have taken steps to limit their loss. – Erhverv & Økonomi

SEE ALSO: Former management of Amagerbanken reported to fraud squad