Denmark and the euro
Encyclopedia
Denmark
uses the krone
as its currency
and does not currently use the euro
, having negotiated an opt-out from participation under the Edinburgh Agreement
in 1992. In 2000 the government held a referendum on introducing the euro, which was defeated with 46.8% voting yes and 53.2% voting no. The Danish krone is part of the ERM-II
mechanism, so its exchange rate is tied to the euro ± 2.25%.
Most of the large political parties in Denmark favour the introduction of the euro and the idea of a second referendum has been suggested several times since 2000. However, some important parties such as the Danish People's Party
and Socialist People's Party
do not support it. Public opinion surveys have shown fluctuating support for the single currency with majorities in favour for some years after the physical introduction of the currency. However, following the financial crisis of 2008 support began to fall, and in late 2011 support for the euro crashed in light of the escalating European sovereign debt crisis.
Denmark borders one eurozone member, Germany
, and one EU member that is obliged (de jure) to adopt the euro in the future, Sweden
.
originally required that all members of the European Union
join the euro once certain economic criteria
are met. Denmark ratified this treaty on 18 May 1993 but with the addition of the Edinburgh Agreement
which gives it an exception and allows it to not adopt the euro if it does not want to. However, Denmark meets all five criteria and could join the euro if it chooses.
Since 1 January 1999, the krone
has been part of the ERM II mechanism, under which it is required to trade within a 2.25% either side of a specified rate of €1 = DKK 7.46038 making the lower rate 7.29252 and the upper rate 7.62824 kroner for 1 euro. This band, 2.25%, is narrower than the 15% band used for most ERM II members. However, the exchange rate has kept within 0.5% of the defined rate, even less than the set limits. The independence of the Danish central bank is therefore limited in practice. Its aim is to keep the crown within this exchange rate band. This policy marks a continuation of the situation that existed from 1982-1999 with regard to the Deutsche Mark, which provided a similar anchor currency for the DKK. The ECB is also obliged to help protect the Danish currency in the case of speculative attacks.
fixed their currencies against gold and formed the Scandinavian Monetary Union
. Prior to this date Denmark used the Danish rigsdaler
divided into 96 rigsbank skilling. In 1875, Norway joined this union. A rate of 2.48 kronor per gram of gold, or roughly 0.403 grams per krone was established. An equal valued krone of the monetary union replaced the three legacy currencies at the rate of 1 krone = ½ Danish rigsdaler
= ¼ Norwegian speciedaler
= 1 Swedish riksdaler. The new currency (krone) became a legal tender and was accepted in all three countries - Denmark, Sweden and Norway. This monetary union lasted until 1914 when World War I
brought an end to it. But the name of the currencies in each country remained unchanged.
(EMS). Prior to that Denmark had participated in the "European currency snake
" in the years after the collapse of Bretton Woods
.
originally required that all EU member states except the UK join the euro. However, following a referendum
on 2 June 1992 in which Danes rejected this treaty, Denmark negotiated the Edinburgh Agreement
, under which Denmark was also allowed to opt-out from eurozone membership
, which was accepted in a referendum
on 18 May 1993. As the result Denmark is not required to join the eurozone. Denmark did however participate in Stage 2 of EMU, which was considered the preparatory phase for the introduction of the euro. As a part of this process the National Bank of Denmark participated in various aspects of the planning of the euro as it was still considered to be very important for future Danish economic policy. According to a history published by the central bank, "Firstly, it was important to create a solid framework for price stability in the euro area, making it an appropriate anchor for the Danish fixed-exchange-rate policy. Secondly, Denmark had an interest in developing an expedient framework for exchange rate cooperation between the euro area and the non-euro area member states. Thirdly, Denmark had a general interest in the formulation of the ground rules for Stage 3 of EMU to ensure that Denmark would be able to adopt the single currency at a later stage on the same terms as those applying to the initial euro area member states."
held on 28 September 2000 rejected membership of the eurozone
. 87.6% of eligible voters turned out, with 46.8% voting yes and 53.2% voting no. Most political parties, media organisations and economic actors in Denmark campaigned in favour of adopting the euro. However, a couple of major parties campaigned against. Had the vote been favourable, Denmark would have joined the eurozone on 1 January 2002, and introduced the banknotes and coins in 2004. The immediate run-up to the referendum saw a significant weakening of the euro vs. the US dollar. Some analysts believe that this resulted in a general weakening of confidence in the new currency, directly contributing to its rejection. The bank believes that the debate was "coloured by the view that, on account of its fixed-exchange-rate policy, Denmark had already reaped some of the benefits of joining the euro area."
There has been some speculation that the result of a Danish referendum would affect the Swedish debate on the euro.
The euro can be used in some locations in Denmark, usually in places catering to tourists, such as museums, airports and shops with large numbers of international visitors. However, change is usually given in kroner. Double kroner-euro prices are used on all ferries going between Denmark and Germany.
to the ESCB
. In theory this would limit the ability of Denmark to conduct an independent monetary policy, however a study of the history of the Danish monetary policy shows that, "while Denmark does not share a single currency, its central bank has always tracked changes made by the ESCB".
However, whilst outside the euro, Denmark does not have any representation in the ESCB direction. This motivated the support for an adoption of the euro by former Prime Minister Anders Fogh Rasmussen
: "De facto, Denmark participates in the euro zone but without having a seat at the table where decisions are made, and that's a political problem". Furthermore the ESCB does not defend the Danish krone exchange rate. This is done by Danmarks Nationalbank, and the Danish government. In a crisis it can be tough for a small country to defend its exchange rate.
The expected practical advantages of euro adoption are a decrease of transaction costs with the eurozone, a better transparency of foreign markets for Danish consumers, and more importantly a decrease of the interest rates which has a positive effect on growth. However, when joining the euro, Denmark would abandon the possibility to adopt a different monetary policy from the ECB. If ever an economic crisis were to strike specifically the country it would have to rely only on fiscal policy and labour market reforms.
In the wake of the 2010 European sovereign debt crisis
European leaders established the European Financial Stability Facility
(EFSF) which is a special purpose vehicle aimed at preserving financial stability in Europe
by providing financial assistance to eurozone
states in difficulty. It has two parts. The first part expands a €60 billion stabilisation fund (European Financial Stabilisation Mechanism
). All EU countries contribute to this fund on a pro-rata
basis, whether they are eurozone countries or not.
The second part, worth €440 billion consists of government-backed loans to improve market confidence. All eurozone economies will participate in funding this mechanism, while other EU members can choose whether to participate. Unlike Sweden and Poland, Denmark has refused to help fund this portion of the EFSF. If Denmark joined the eurozone it would then be obliged to help fund the second portion.
Polls on the question whether Denmark should abolish the krone and join the euro. The actual wording of the question may have varied.
Greens has generally asked "How would you vote at a possible new referendum about participation of Denmark in the common currency?" ("Hvad ville du stemme ved en evt. ny folkeafstemning om Danmarks deltagelse i den fælles valuta?").
currently use the Faroese króna
, a localized version of the Danish krone but legally the same currency. Such notes are normally not accepted by shops in Denmark proper, or foreign exchange bureaus, but exchanged 1:1 in Danish banks. Greenland
currently uses ordinary Danish kroner but has considered introducing its own currency, the Greenlandic krone
in a system similar to that of the Faroese one. Both continue to use Danish coins.
It remains unclear if Greenland and the Faroe Islands will adopt the euro should Denmark choose to do so. Both are parts of the Kingdom of Denmark
, but remain outside of the EU. For this reason, they don't take part in EU referenda.
and the Royal Mint were asked by the Ministry of Economics to propose possible designs for the future Danish euro coins. The suggested design was based on the designs of the Danish 10- and 20-kroner coins, with Queen Margrethe II on the front, and the 25- and 50-øre coins, switching their back motif (a crown) to the front of the euro coins.
Denmark
Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...
uses the krone
Danish krone
The krone is the official currency of the Kingdom of Denmark consisting of Denmark, the Faroe Islands and Greenland. It is subdivided into 100 øre...
as its currency
Currency
In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...
and does not currently use the euro
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
, having negotiated an opt-out from participation under the Edinburgh Agreement
Edinburgh Agreement
The Edinburgh Agreement or Edinburgh Decision is a December 1992 agreement reached at a European Council meeting in Edinburgh, UK, that granted Denmark four exceptions to the Maastricht Treaty so that it could be ratified by Denmark. This was necessary because, without all member states of the...
in 1992. In 2000 the government held a referendum on introducing the euro, which was defeated with 46.8% voting yes and 53.2% voting no. The Danish krone is part of the ERM-II
European Exchange Rate Mechanism
The European Exchange Rate Mechanism, ERM, was a system introduced by the European Community in March 1979, as part of the European Monetary System , to reduce exchange rate variability and achieve monetary stability in Europe, in preparation for Economic and Monetary Union and the introduction of...
mechanism, so its exchange rate is tied to the euro ± 2.25%.
Most of the large political parties in Denmark favour the introduction of the euro and the idea of a second referendum has been suggested several times since 2000. However, some important parties such as the Danish People's Party
Danish People's Party
The Danish People's Party is a political party in Denmark which is frequently described as right-wing populist by political scientists and commentators. The party is led by Pia Kjærsgaard...
and Socialist People's Party
Socialist People's Party (Denmark)
The Socialist People's Party is a green and socialist political party in Denmark.-1959–69:The SF was founded on 15 February 1959 by Aksel Larsen, a former leader of the Communist Party of Denmark and CIA agent. Larsen was removed from the ranks of the DKP for his criticism over the Soviet...
do not support it. Public opinion surveys have shown fluctuating support for the single currency with majorities in favour for some years after the physical introduction of the currency. However, following the financial crisis of 2008 support began to fall, and in late 2011 support for the euro crashed in light of the escalating European sovereign debt crisis.
Denmark borders one eurozone member, Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
, and one EU member that is obliged (de jure) to adopt the euro in the future, Sweden
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
.
Status
The Maastricht TreatyMaastricht Treaty
The Maastricht Treaty was signed on 7 February 1992 by the members of the European Community in Maastricht, Netherlands. On 9–10 December 1991, the same city hosted the European Council which drafted the treaty...
originally required that all members of the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
join the euro once certain economic criteria
Convergence criteria
The euro convergence criteria are the criteria for European Union member states to enter the third stage of European Economic and Monetary Union and adopt the euro as their currency...
are met. Denmark ratified this treaty on 18 May 1993 but with the addition of the Edinburgh Agreement
Edinburgh Agreement
The Edinburgh Agreement or Edinburgh Decision is a December 1992 agreement reached at a European Council meeting in Edinburgh, UK, that granted Denmark four exceptions to the Maastricht Treaty so that it could be ratified by Denmark. This was necessary because, without all member states of the...
which gives it an exception and allows it to not adopt the euro if it does not want to. However, Denmark meets all five criteria and could join the euro if it chooses.
| Convergence criteria | |||||
| | Inflation rate Inflation rate In economics, the inflation rate is a measure of inflation, the rate of increase of a price index . It is the percentage rate of change in price level over time. The rate of decrease in the purchasing power of money is approximately equal.The inflation rate is used to calculate the real interest... 1 | | Government Government Government refers to the legislators, administrators, and arbitrators in the administrative bureaucracy who control a state at a given time, and to the system of government by which they are organized... finances | | ERM II European Exchange Rate Mechanism The European Exchange Rate Mechanism, ERM, was a system introduced by the European Community in March 1979, as part of the European Monetary System , to reduce exchange rate variability and achieve monetary stability in Europe, in preparation for Economic and Monetary Union and the introduction of... membership | | Long-term interest rate Interest rate An interest rate is the rate at which interest is paid by a borrower for the use of money that they borrow from a lender. For example, a small company borrows capital from a bank to buy new assets for their business, and in return the lender receives interest at a predetermined interest rate for... 2 |
||
| annual government Government Government refers to the legislators, administrators, and arbitrators in the administrative bureaucracy who control a state at a given time, and to the system of government by which they are organized... deficit to GDP Gross domestic product Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living.... | gross government debt Government debt Government debt is money owed by a central government. In the US, "government debt" may also refer to the debt of a municipal or local government... to GDP Gross domestic product Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living.... |
||||
| Reference value 3 | max 3.2% | max 3% | max 60% | min 2 years | max 6.5% |
| (FY2010) | 2.3% | -2.7% 4 | 41.6% | joined ERM II on 1 January 1999 | 2.96% |
| 1 No more than 1.5% higher than the 3 best-performing EU member states. HICP rate as published by the ECB. 2 No more than 2% higher than the 3 best-performing EU member states. 3 Values from May 2008 report http://www.ecb.int/pub/pdf/conrep/cr200805en.pdf. To be updated each year. 4 Negative value is a surplus. |
|||||
Since 1 January 1999, the krone
Danish krone
The krone is the official currency of the Kingdom of Denmark consisting of Denmark, the Faroe Islands and Greenland. It is subdivided into 100 øre...
has been part of the ERM II mechanism, under which it is required to trade within a 2.25% either side of a specified rate of €1 = DKK 7.46038 making the lower rate 7.29252 and the upper rate 7.62824 kroner for 1 euro. This band, 2.25%, is narrower than the 15% band used for most ERM II members. However, the exchange rate has kept within 0.5% of the defined rate, even less than the set limits. The independence of the Danish central bank is therefore limited in practice. Its aim is to keep the crown within this exchange rate band. This policy marks a continuation of the situation that existed from 1982-1999 with regard to the Deutsche Mark, which provided a similar anchor currency for the DKK. The ECB is also obliged to help protect the Danish currency in the case of speculative attacks.
Early monetary unions in Denmark (1873-1914)
On 5 May 1873 Denmark with SwedenSweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
fixed their currencies against gold and formed the Scandinavian Monetary Union
Scandinavian Monetary Union
The Scandinavian Monetary Union was a monetary union formed by Sweden and Denmark on May 5, 1873, by fixing their currencies against gold at par to each other...
. Prior to this date Denmark used the Danish rigsdaler
Danish rigsdaler
The rigsdaler was the name of several currencies used in Denmark until 1873. The similarly named Reichsthaler, riksdaler and rijksdaalder were used in Germany and Austria-Hungary, Sweden and the Netherlands, respectively....
divided into 96 rigsbank skilling. In 1875, Norway joined this union. A rate of 2.48 kronor per gram of gold, or roughly 0.403 grams per krone was established. An equal valued krone of the monetary union replaced the three legacy currencies at the rate of 1 krone = ½ Danish rigsdaler
Danish rigsdaler
The rigsdaler was the name of several currencies used in Denmark until 1873. The similarly named Reichsthaler, riksdaler and rijksdaalder were used in Germany and Austria-Hungary, Sweden and the Netherlands, respectively....
= ¼ Norwegian speciedaler
Norwegian speciedaler
The speciedaler was the currency of Norway between 1816 and 1875. It replaced the rigsdaler specie at par and was subdivided into 120 skilling . It was replaced by the Norwegian krone when Norway joined the Scandinavian Monetary Union...
= 1 Swedish riksdaler. The new currency (krone) became a legal tender and was accepted in all three countries - Denmark, Sweden and Norway. This monetary union lasted until 1914 when World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
brought an end to it. But the name of the currencies in each country remained unchanged.
European Monetary System and pre-euro monetary cooperation
The Danish krone was fixed to a basket of European currencies during the 1980s. This was formalised in the European Monetary SystemEuropean Monetary System
There are three stages of monetary cooperation in the European Union.-Background:European currency exchange rate stability has been one of the most important objectives of European policy makers at least since the Second World War....
(EMS). Prior to that Denmark had participated in the "European currency snake
Snake in the tunnel
The snake in the tunnel was the first attempt at European monetary cooperation in the 1970s, aiming at limiting fluctuations between different European currencies...
" in the years after the collapse of Bretton Woods
Bretton Woods
Bretton Woods can refer to:*Bretton Woods, New Hampshire, a village in the United States**Bretton Woods Mountain Resort, a ski resort located in Bretton Woods, New Hampshire...
.
Pre-eurozone documents (1992-1999)
The Maastricht TreatyMaastricht Treaty
The Maastricht Treaty was signed on 7 February 1992 by the members of the European Community in Maastricht, Netherlands. On 9–10 December 1991, the same city hosted the European Council which drafted the treaty...
originally required that all EU member states except the UK join the euro. However, following a referendum
Danish Maastricht Treaty referendum, 1992
A referendum on the Maastricht Treaty was held in Denmark on 2 June 1992. It was rejected by 50.7% of voters with a turnout of 83.1%. The rejection was considered somewhat of a blow to the process of European integration, although the process continued...
on 2 June 1992 in which Danes rejected this treaty, Denmark negotiated the Edinburgh Agreement
Edinburgh Agreement
The Edinburgh Agreement or Edinburgh Decision is a December 1992 agreement reached at a European Council meeting in Edinburgh, UK, that granted Denmark four exceptions to the Maastricht Treaty so that it could be ratified by Denmark. This was necessary because, without all member states of the...
, under which Denmark was also allowed to opt-out from eurozone membership
Opt-outs in the European Union
In general, the law of the European Union is valid in all of the twenty-seven European Union member states. However, occasionally member states negotiate certain opt-outs from legislation or treaties of the European Union, meaning they do not have to participate in certain policy areas...
, which was accepted in a referendum
Danish Maastricht Treaty referendum, 1993
A second referendum on the Maastricht Treaty was held in Denmark on 18 May 1993. After rejecting the treaty in a referendum the previous year, this time it was approved by 56.7% of voters with an 86.5% turnout.-Background:...
on 18 May 1993. As the result Denmark is not required to join the eurozone. Denmark did however participate in Stage 2 of EMU, which was considered the preparatory phase for the introduction of the euro. As a part of this process the National Bank of Denmark participated in various aspects of the planning of the euro as it was still considered to be very important for future Danish economic policy. According to a history published by the central bank, "Firstly, it was important to create a solid framework for price stability in the euro area, making it an appropriate anchor for the Danish fixed-exchange-rate policy. Secondly, Denmark had an interest in developing an expedient framework for exchange rate cooperation between the euro area and the non-euro area member states. Thirdly, Denmark had a general interest in the formulation of the ground rules for Stage 3 of EMU to ensure that Denmark would be able to adopt the single currency at a later stage on the same terms as those applying to the initial euro area member states."
Euro referendum (2000)
A referendumDanish euro referendum, 2000
A referendum on joining the Euro was held in Denmark on 28 September 2000. It was rejected by 53.2% of voters with a turnout of 87.6%.-Background:...
held on 28 September 2000 rejected membership of the eurozone
Eurozone
The eurozone , officially called the euro area, is an economic and monetary union of seventeen European Union member states that have adopted the euro as their common currency and sole legal tender...
. 87.6% of eligible voters turned out, with 46.8% voting yes and 53.2% voting no. Most political parties, media organisations and economic actors in Denmark campaigned in favour of adopting the euro. However, a couple of major parties campaigned against. Had the vote been favourable, Denmark would have joined the eurozone on 1 January 2002, and introduced the banknotes and coins in 2004. The immediate run-up to the referendum saw a significant weakening of the euro vs. the US dollar. Some analysts believe that this resulted in a general weakening of confidence in the new currency, directly contributing to its rejection. The bank believes that the debate was "coloured by the view that, on account of its fixed-exchange-rate policy, Denmark had already reaped some of the benefits of joining the euro area."
Possible second euro referendum
On 22 November 2007, the newly re-elected Danish government declared its intention to hold a new referendum on the abolition of the four exemptions, including exemption from the euro, by 2011. It was unclear if people would vote on each exemption separately, or if people would vote on all of them together. However, this referendum did not take place before the 2011 parliamentary election, and the new government does not intend to hold a referendum on the euro.There has been some speculation that the result of a Danish referendum would affect the Swedish debate on the euro.
Usage today
Consequences of a euro adoption
If Denmark were to adopt the euro, the monetary policy would be transferred from the Danmarks NationalbankDanmarks Nationalbank
Danmarks Nationalbank is the central bank of the Kingdom of Denmark. It is a non-eurozone member of the European System of Central Banks . The bank issues the Danish currency, the krone....
to the ESCB
European System of Central Banks
The European System of Central Banks is composed of the European Central Bank and the national central banks of all 27 European Union Member States.-Functions:...
. In theory this would limit the ability of Denmark to conduct an independent monetary policy, however a study of the history of the Danish monetary policy shows that, "while Denmark does not share a single currency, its central bank has always tracked changes made by the ESCB".
However, whilst outside the euro, Denmark does not have any representation in the ESCB direction. This motivated the support for an adoption of the euro by former Prime Minister Anders Fogh Rasmussen
Anders Fogh Rasmussen
Anders Fogh Rasmussen is a Danish politician, and the 12th and current Secretary General of NATO. Rasmussen served as Prime Minister of Denmark from 27 November 2001 to 5 April 2009....
: "De facto, Denmark participates in the euro zone but without having a seat at the table where decisions are made, and that's a political problem". Furthermore the ESCB does not defend the Danish krone exchange rate. This is done by Danmarks Nationalbank, and the Danish government. In a crisis it can be tough for a small country to defend its exchange rate.
The expected practical advantages of euro adoption are a decrease of transaction costs with the eurozone, a better transparency of foreign markets for Danish consumers, and more importantly a decrease of the interest rates which has a positive effect on growth. However, when joining the euro, Denmark would abandon the possibility to adopt a different monetary policy from the ECB. If ever an economic crisis were to strike specifically the country it would have to rely only on fiscal policy and labour market reforms.
In the wake of the 2010 European sovereign debt crisis
2010 European sovereign debt crisis
From late 2009, fears of a sovereign debt crisis developed among investors concerning some European states, intensifying in early 2010 and thereafter.....
European leaders established the European Financial Stability Facility
European Financial Stability Facility
The European Financial Stability Facility is a special purpose vehicle financed by members of the eurozone to combat the European sovereign debt crisis. It was agreed by the 27 member states of the European Union on 9 May 2010, aiming at preserving financial stability in Europe by providing...
(EFSF) which is a special purpose vehicle aimed at preserving financial stability in Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
by providing financial assistance to eurozone
Eurozone
The eurozone , officially called the euro area, is an economic and monetary union of seventeen European Union member states that have adopted the euro as their common currency and sole legal tender...
states in difficulty. It has two parts. The first part expands a €60 billion stabilisation fund (European Financial Stabilisation Mechanism
European Financial Stabilisation Mechanism
The European Financial Stabilisation Mechanism is an emergency funding programme reliant upon funds raised on the financial markets and guaranteed by the European Commission using the budget of the European Union as collateral...
). All EU countries contribute to this fund on a pro-rata
Pro-rata
Pro rata is an adverb or adjective, meaning in proportion. The term is used in many legal and economic contexts. It is sometimes spelled pro-rata, but this is technically a misspelling of the Latin phrase...
basis, whether they are eurozone countries or not.
The second part, worth €440 billion consists of government-backed loans to improve market confidence. All eurozone economies will participate in funding this mechanism, while other EU members can choose whether to participate. Unlike Sweden and Poland, Denmark has refused to help fund this portion of the EFSF. If Denmark joined the eurozone it would then be obliged to help fund the second portion.
Polls
| Date | YES | NO | Unsure | Number of participants | Held by | Ref |
|---|---|---|---|---|---|---|
| 29 March – 30 April 2002 | 47% | 33% | 20% | Unknown | Eurobarometer Eurobarometer Eurobarometer is a series of surveys regularly performed on behalf of the European Commission since 1973. It produces reports of public opinion of certain issues relating to the European Union across the member states... |
|
| March 2007 | 56% | 39% | 5% | 910 persons | Greens Analyseinstitut published in Børsen Dagbladet Børsen Børsen is a Danish daily newspaper specialising in business news.... |
|
| April 2007 | 53% | 40% | 7% | 910 persons | Greens Analyseinstitut published in Børsen | |
| November 2007 | 54% | 42% | 4% | Unknown | Greens Analyseinstitut published in Børsen | |
| 26 November 2007 | 52% | 39% | 9% | 1016 Danish adults | Vilstrup Synovate published in Politiken Politiken Politiken is a Danish daily broadsheet newspaper, published by JP/Politikens Hus.The newspaper comes third among Danish newspapers in terms of both number of readers and circulated copies .... |
|
| April 2008 | 55% | 38% | 7% | 1009 Danish adults | Greens Analyseinstitut published in Børsen | |
| 5 – 7 May 2008 | 54% | 42% | 4% | 1009 Danish adults | Greens Analyseinstitut published in Børsen | |
| middle of June 2008 | 40% | 48% | 12% | 1036 Danish | Capacent Epinions | |
| 29 September – 1 October 2008 | 52% | 44% | 4% | 1050 Danish adults | Greens Analyseinstitut published in Børsen | |
| 3 – 5 November 2008 | 54% | 38% | 8% | 1098 Danish adults | Greens Analyseinstitut published in Børsen | |
| December 2008 | 54% | 40% | 6% | >1000 Danish adults | Greens Analyseinstitut published in Børsen | |
| 5 – 7 January 2009 | 56% | 38% | 4% | 1307 Danish adults | Greens Analyseinstitut published in Børsen | |
| 2 – 4 February 2009 | 57% | 39% | 4% | 1124 Danish adults | Greens Analyseinstitut published in Børsen | |
| 11 February 2009 | 42% | 42% | 16% | Unknown | Gallup Poll in Berlingske Tidende | |
| 2 – 4 March 2009 | 52% | 38% | 10% | 1085 Danish adults | Greens Analyseinstitut published in Børsen | |
| 30 March – 1 April 2009 | 51% | 42% | 7% | 1007 Danish adults | Greens Analyseinstitut published in Børsen | |
| 27 – 29 April 2009 | 52% | 40% | 8% | 1178 Danish adults | Greens Analyseinstitut published in Børsen | |
| 13 May 2009 | 43% | 45% | 11% | Unknown | Rambøll | |
| 25 – 27 May 2009 | 51% | 42% | 7% | 951 Danish adults | Greens Analyseinstitut published in Børsen | |
| September 2009 | 50% | 43% | 7% | 951 Danish adults | Greens Analyseinstitut published in Børsen | |
| October 2009 | 50% | 43% | 7% | 1081 Danish adults | Greens Analyseinstitut published in Børsen | |
| 2 – 4 November 2009 | 54% | 41% | 5% | 1158 Danish adults | Greens Analyseinstitut published in Børsen | |
| 30 November – 2 December 2009 | 50% | 40% | 10% | 1001 Danish adults | Greens Analyseinstitut published in Børsen | |
| 2–4 January 2010 | 51% | 42% | 7% | 1162 Danish adults | Greens Analyseinstitut published in Børsen | |
| 1–3 February 2010 | 49% | 45% | 6% | 1241 Danish adults | Greens Analyseinstitut published in Børsen | |
| 1–3 March 2010 | 48% | 46% | 6% | 552 Danish adults | Greens Analyseinstitut published in Børsen | |
| 12–14 April 2010 | 52% | 41% | 7% | 988 Danish adults | Greens Analyseinstitut published in Børsen | |
| 3–5 May 2010 | 48% | 45% | 7% | 1004 Danish adults | Greens Analyseinstitut published in Børsen | |
| 11–13 May 2010 | 45% | 43.2% | 11.2% | 1002 Danish adults | Catinét Ritzau published in Fyens | |
| 31 May – 2 June 2010 | 45% | 48% | 7% | 1079 Danish adults | Greens Analyseinstitut published in Børsen | |
| 27 September 2010 | 45% | 48.3% | 6.7% | Unknown | Jyllands-Posten | |
| 1 October 2010 | 46% | 48% | 6% | 1025 Danish Adults | Greens Analyseinstitut published in Børsen | |
| 1 November 2010 | 44% | 49% | 7% | Unknown | Greens Analyseinstitut published in Børsen | |
| 1 December 2010 | 46% | 48% | 6% | 1006 Danish Adults | Greens Analyseinstitut published in Børsen | |
| 1 January 2011 | 43% | 50% | 7% | 1336 Danish Adults | Greens Analyseinstitut published in Børsen | |
| 1 February 2011 | 43% | 48% | 9% | 1053 Danish Adults | Greens Analyseinstitut published in Børsen | |
| 1 March 2011 | 47% | 46% | 7% | 1060 Danish Adults | Greens Analyseinstitut published in Børsen | |
| 1 April 2011 | 43% | 50% | 7% | 1286 Danish Adults | Greens Analyseinstitut published in Børsen | |
| 1 May 2011 | 44% | 48% | 8% | 1133 Danish Adults | Greens Analyseinstitut published in Børsen | |
| 1 August 2011 | 37% | 54% | 9% | 1143 Danish Adults | Greens Analyseinstitut published in Børsen | |
| September 2011? | 22.5% | 50.6% | 28.1% | unknown | Danske Bank Danske Bank Danske Bank is a Danish bank. The name literally means "Danish Bank" It was founded 5 October 1871 as Den Danske Landmandsbank, Hypothek- og Vexelbank i Kjøbenhavn .... |
|
| October 11. 2011 | 29% | 65% | 6% | 1239 | Greens Analyseinstitut published in Børsen |
Greens has generally asked "How would you vote at a possible new referendum about participation of Denmark in the common currency?" ("Hvad ville du stemme ved en evt. ny folkeafstemning om Danmarks deltagelse i den fælles valuta?").
Danish dominions
The Faroe IslandsFaroe Islands
The Faroe Islands are an island group situated between the Norwegian Sea and the North Atlantic Ocean, approximately halfway between Scotland and Iceland. The Faroe Islands are a self-governing territory within the Kingdom of Denmark, along with Denmark proper and Greenland...
currently use the Faroese króna
Faroese króna
The króna is the currency of the Faroe Islands. It is issued by the Danish National Bank. It is not an independent currency but a version of the Danish krone. Consequently, it does not have an ISO 4217 currency code. The ISO 4217 code for the Danish krone is DKK...
, a localized version of the Danish krone but legally the same currency. Such notes are normally not accepted by shops in Denmark proper, or foreign exchange bureaus, but exchanged 1:1 in Danish banks. Greenland
Greenland
Greenland is an autonomous country within the Kingdom of Denmark, located between the Arctic and Atlantic Oceans, east of the Canadian Arctic Archipelago. Though physiographically a part of the continent of North America, Greenland has been politically and culturally associated with Europe for...
currently uses ordinary Danish kroner but has considered introducing its own currency, the Greenlandic krone
Greenlandic krone
The Greenlandic krone was a planned currency for Greenland. Currently, the Danish krone circulates. The Greenland krone was not intended to be an independent currency but a version of the Danish krone. Consequently, it will not have an ISO 4217 currency code. The ISO 4217 code for the Danish krone...
in a system similar to that of the Faroese one. Both continue to use Danish coins.
It remains unclear if Greenland and the Faroe Islands will adopt the euro should Denmark choose to do so. Both are parts of the Kingdom of Denmark
Kingdom of Denmark
The Kingdom of Denmark or the Danish Realm , is a constitutional monarchy and sovereign state consisting of Denmark proper in northern Europe and two autonomous constituent countries, the Faroe Islands in the North Atlantic and Greenland in North America. Denmark is the hegemonial part, where the...
, but remain outside of the EU. For this reason, they don't take part in EU referenda.
Possible euro coin design
Before Denmark's 2000 referendum on the issue, Danmarks NationalbankDanmarks Nationalbank
Danmarks Nationalbank is the central bank of the Kingdom of Denmark. It is a non-eurozone member of the European System of Central Banks . The bank issues the Danish currency, the krone....
and the Royal Mint were asked by the Ministry of Economics to propose possible designs for the future Danish euro coins. The suggested design was based on the designs of the Danish 10- and 20-kroner coins, with Queen Margrethe II on the front, and the 25- and 50-øre coins, switching their back motif (a crown) to the front of the euro coins.