Denmark to hold a referendum on the single currency in 2004 or 2005, January 2003

A year after euro notes and coins entered into circulation across the eurozone, Danish Prime Minister Anders Fogh Rasmussen announced in his speech welcoming in 2003 that Denmark is likely to hold a referendum on membership of the single currency in 2004 or 2005. The indication of a Danish euro referendum follows the earlier decision by Sweden to hold a referendum in September 2003. If both countries decide to adopt the single currency then the United Kingdom would become the only EU Member State outside the eurozone.

In his New Year's Speech, Mr. Rasmussen said:

'Denmark must continue its active participation in the development of the new Europe. We must be a full and unconditional part of the EU. It is detrimental to Denmark's interests that we have placed ourselves without influence in key areas as a consequence of our opt-outs from the EU co-operation.For this reason we should abolish the opt-outs. This, however, is naturally subject to referendum'.

The Prime Minister suggested that a referendum on a new basic treaty, the likely outcome of the European Convention and the next Intergovernmental conference, would provide the opportunity for the Danish people to reconsider their decision to opt-out of four key areas of EU affairs such as the single currency and the Common Foreign and Security policy. Such a timeframe would mean that any euro referendum in Denmark is likely to take place several months after the vote on the single currency in Sweden, making it increasingly likely that the Swedish result could well sway the Danish vote.

In September 2000 Denmark became the first EU Member State to hold a popular vote on the adoption of the single currency. Fifty-three per cent voted against joining the euro going against the wishes of all the main political parties, as well as the country's business leaders and trade unions. But two years on and with the euro now in use, support for the currency in the small Scandinavian nation has grown. Recent opinion polls suggest that nearly two-thirds of Danes have spoken in favour of joining the euro and there is also a majority in the Danish Parliament keen for the country to become a eurozone member. However, there is also a strong sense of fear amongst many Danes that the adoption of the euro could threaten the country's sovereignty, increasing the number of important decisions that will be made by EU officials in Brussels.

Signs that Denmark and Sweden could soon become eurozone members is increasing pressure on the UK government to make a decision about a euro referendum. The results of the government's 'five economic tests' will be published by June 2003 and Tony Blair, the UK Prime Minister, has indicated that if the results are positive then the British people would have the final say in a referendum. In his New Year Speech, Mr. Blair said:

And this year we will face what may be the single most important decision that faces this political generation - the question of whether to join the Euro. We see no constitutional bar to joining, and the political case for entry is overwhelming. But ultimately it is an economic union, and it is an economic case that must be made.

Links:
Denmark: Statsministeriet:
	Homepage
	02.01.03:	Prime Minister Anders Fogh Rasmussen's New Year's Speech 2003
European Sources Online: Financial Times:
	02.01.03:	Danish euro move adds to pressure on Blair
BBC News Online:
	02.01.03:	Denmark to hold second euro vote
	28.09.00:	Danes say no to euro
European Sources Online: In Focus:
	Danes reject the euro

Helen Bower

Compiled: Tuesday, 7 January 2003

A year after euro notes and coins entered into circulation across the eurozone, Danish Prime Minister Anders Fogh Rasmussen announced in his speech welcoming in 2003 that Denmark is likely to hold a referendum on membership of the single currency in 2004 or 2005.