Denmark: A Free Or Euro
Dependent Nation?

Danish June Movement MEP Jens-Peter Bonde expects that both London and Copenhagen will celebrate a "no" vote in the Danish referendum on the single currency on September 28th 2000. Speaking in March, Mr. Bonde countered suggestions that 54% of Danes support the single currency, he said: "If you ask them if they are in favour of a single currency, I expect the majority would say that it's a good idea to have a common currency." An opinion poll on the euro a month later, showed that the two sides of the debate were drawing level. The pro-camp had only a 2% lead with 46% saying that they favoured the single currency.

Mr. Bonde highlighted the problems with conducting polls, including referenda. He pointed out that much depends on how a question is framed. Mr. Bonde suggested that the Danes don't really want to give up the Kroner for the euro. So is the euro a foregone conclusion? "The euro is decided. It will be a currency from 2002. The question is whether we shall forbid our national currency to exist. That's a question that ought to be put to the people," he said.

Comparing the campaigns in the UK Mr. Bonde said that it has "a stronger resistance in the people than we have in Denmark." The views of the Danish population against political integration are just as strong as they are in the UK. So our referendum is a very open one." Contrary to suggestions by the Danish Prime Minister Poul Nyrup Rasmussen, Mr. Bonde doesn't think that Denmark will be isolated from the EU if the country votes against joining the euro. Mr. Rasmussen fears that the financial markets will respond harshly to a Danish "no" vote. He argued in April that Denmark's " best insurance against this is to adopt the common currency." His main concerns were for the Danish welfare system.

"No I don't think it's a big problem," pondered Mr. Bonde about the effects of Brussels red tape on Danish businesses. He added: "I mean it's not a decision on membership in the EU. All the directives will exist anyway, and we can't vote them away. So this will not be an argument." In the UK Christopher Johnson regularly reports in the Sunday Telegraph about British firms that have closed, because of badly thought out or poorly implemented directives.

Many admit that Brussels is not always at fault. Much lies in how the new regulations are interpreted and integrated into national laws. Even so the Danish Eurosceptics oppose political integration. "Every time we take a decision away from Westminster and the Danish parliament and move it to Brussels, we take the power away from the elected people and the electorate," argued Mr. Bonde.

"Traditionally the business community was very favourable towards European integration. It is not so friendly towards European Integration any longer," explained Mr. Bonde. He pointed out that the Liberal and Conservative opposition has increased." He believes that Danes "are very much in favour of economic co-operation", but they are "very much opposed to political integration with the aim to establish one single state."

However, Anders Panum Jensen of the Danish European Movement thinks that "in real terms we don't have this sovereignty." He continued, arguing that Denmark is totally dependent on the European Central Bank's decisions: "We have for 20 years pursued a fixed currency policy towards the German Mark and now the euro." He counters Mr. Bonde's remarks about Danish business opinion on the euro. "Compared to the UK where you have a very vocal industry group against the UK joining euro, the situation in Denmark is a massive "yes," he revealed.

Anders Panum Jensen thinks that the Danish people will gain from political and economic union. Talking about the loss of sovereignty, he argued that the decision has to be based on what can be gained versus what is lost. "No-one likes to surrender sovereignty, but also people like to reap the benefits of the European co-operation, so it's a balance that people have to make," he said. He revealed that unlike Tony Blair's besieged Government, the ruling Social Democratic party in Denmark has been openly campaigning for the euro for about a year.

Echoes of successive British Governments wanting to be "at the heart of Europe," rolled off Anders Panum Jensen's lips. "It's a question about whether we want to be at the centre of European politics," he explained. Even so he agrees with Jens-Peter Bonde that the EU shouldn't become a "centralist project" "Only policy matters where there is an advantage of European co-operation should become policy issues for the European Union," he reasoned.

Looking back at the last referenda in September 1992, Anders Panum Jensen said that the second ballot was necessary to keep Denmark in the European Union. He also added that in the "Danish European Movement we are very much against the substance of the exemptions that Denmark obtained, but we feel it was necessary." He also rejected Jens-Peter Bonde's belief that John Major's part in the second referendum was "the scandal of his life." Mr. Jensen remarked: "I reject the notion of the Danish EU opponents that this second referendum was against the will of the people."

Mr. Jensen is confident of a vote in favour of Danish membership of the euro. But added: "If Denmark votes no to the euro, it will of course be in Denmark's interest that the United Kingdom remains outside of the monetary union, as we would have an ally in seeking influence; although not being an EMU member state." Yet he rejects the notion of Denmark ever joining the North American Free Trade Area (NAFTA), even if Britain takes the lead. He argues that all agreements with NAFTA should be made jointly through the EU. "It's not in Denmark's interest to go solo," he concluded.

Jens Peter Bonde added that Denmark will only leave the EU, if Britain does. Denmark joined the EU, then known as the European Economic Community, in 1972 following Britain. He urges Britain and Sweden "to have a referendum in an open and democratic way." As part of the Europe of Nations group in the European parliament he campaigns for "a Europe of democracies and diversities." To him Denmark has two options: "to keep the Danish crown outside bound to the euro, shadowing the euro, or make it a floating currency like the UK and Sweden does. Both are sensible options." That remains to be seen.

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