The Carlsberg brewery building in Copenhagen. The company is part of a consortium that has joined forces to attract and retain professionals in Denmark.RENE STRANDBYGAARD / PROJECTOR
Naomi Powell is a Canadian freelance journalist based in Stockholm
Denmark's recent decision to reintroduce customs checks at its borders prompted the expected international backlash. European Commission president José Manuel Barroso immediately condemned the plans and Thursday, Germany's ambassador to Denmark said the checks could "create problems for the country's neighbours."
Beyond the political fallout however, there are concerns that Denmark's heated immigration debate and approach to foreigners is taking an economic toll, frightening away skilled workers and damaging competitiveness.
"On the one hand, people see Denmark as place of innovation and design, but on the other hand, people see it as closed, uninviting and even hostile to newcomers," said Sally Khallash, an economist and labour migration expert with the International Organization of Migration. "It's not just a shame, it's really scary because Denmark really needs immigrants."
The nation of 5.5 million, consistently ranked among the world's happiest countries, will see its first large group of baby boomers qualify for retirement in 2013. In less than eight years, one million Danes will reach retirement age, putting enormous strain on the system. With reproduction rates too low to close the gap, Denmark needs an influx of labour from beyond its borders. And as it stands, Danish companies are already struggling to find the skilled workers they need.
The problem isn't unique to Denmark. Across the European Union, declining fertility rates and aging populations are posing challenges to public systems. Given the fierce competition for skilled labour in the EU, where Denmark still draws most of its immigrants, the country needs to recruit workers from further afield, experts say. But a view of the country as unwelcoming, or even hostile to outsiders is frustrating those efforts.
"There are a lot of foreigners that integrate incredibly well and contribute a lot to Danish society and that we are happy to receive," said Tine Horwitz, head of Denmark's Consortium for Global Talent. "That is what we need to show as part of our branding or marketing. We're trying to put things right because it's not the right picture."
The consortium of 19 companies including Carlsberg and shipping giant Maersk joined forces to attract and retain professionals in Denmark. Among their goals: to increase the number of places in international schools, make the country less dependent on Danish as a working language and promote Denmark's celebrated approach to work-life balance and families.
With Denmark facing an election that must be called by November, the immigration issue is expected to once again spark fierce debate. The Danish People's Party has propped up Denmark's minority centre-right government for the last decade, using its influence to push through some of the strictest immigration policies in Europe.
"I know there are a lot of different sources in Denmark working on this but the challenge is as long as we have the political debate, culture and atmosphere we have it's really difficult," said Ms. Khallash. "The issue of immigration in Denmark is so politically sensitive that it would be political suicide for any politicians to actually say we need immigrants. In this sense it's really complex."