Author (Person) | Davies, Eric |
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Publisher | ProQuest Information and Learning |
Series Title | In Focus |
Series Details | 1.10.00 |
Publication Date | 01/10/2000 |
Content Type | News, Overview, Topic Guide | In Focus |
In a referendum on 28 September, voters in Denmark rejected joining the Euro by a majority of 6.2&percent;. A reported turnout of 88&percent; registered 53.1&percent; against joining the Euro, with 46.9&percent; in favour. Responses from official EU sources expressed regret at the decision, but the governments in Sweden and the UK - where referendums on the Euro will also be held - chose not to dwell on the implications of the Danish vote for their own plebiscites. Background Denmark is not part of the 'Eurozone', whose members are Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Portugal and Spain. Greece will join from January 2001 (background to EMU and details of Greece's application can be found in In Focus 11 March 2000: The Danish Constitution identifies the circumstances under which a referendum may - or must - be held. The same source also gives details of the 12 previous referenda held in Denmark since 1953, including the 1992 vote on the Treaty on European Union. (The Danes' rejection of the Treaty had far-reaching effects and provided the impetus for development of the Union's current information policy - see In Focus 28 January 2000: Denmark was the first of the three 'outs' to hold a referendum. In the wake of the Danish result, the Financial Times reported that a referendum in Sweden is likely to be delayed 'until well after a general election in 2002.' The Guardian reported that Sweden will not hold a referendum until 2004 or 2005. Public opinion in both Sweden and the UK is currently anti-Euro. The date for a UK referendum on the Euro has not yet been set, although the intention to hold one was announced in October 1997:
The outcome of the vote in Denmark was difficult to forecast. In mid September, European Voice asserted that:
On 26 September, a 'surge' in the pro-Euro vote was reported by The Independent. A number of correspondents reported that the referendum was not fought purely on economic grounds, but on broader political issues:
'The Danish people's decisive 'No' to the euro is bad news for the EU and even worse for Tony Blair. Britain's prime minister says he will hold a referendum on the single currency after the next election, provided five economic tests are met. But Thursday's result had little to do with economics and was not primarily about the euro. As the campaign for the sixth Danish referendum since 1972 made clear, it was about the political development of the European Union.' (Financial Times)
Anti-Euro groups in the UK and Sweden emphasise these wider issues: a British perspective is provided by Business for Sterling, and a collection of relevant press articles (in English) has been collated by the Swedish-based www.nejtillemu.com. Reaction to the result Finance Ministers of the Eurogroup (the EU member States participating in the Euro), met on 29 September. They issued a statement regretting the Danish decision, but emphasising that it 'does not close the door to a later participation to the Euro area.' It was also noted by Ministers and the President of the European Central Bank that 'the Danish authorities are committed to keeping the Danish krone in the European exchange rate mechanism and within the existing narrow bands.' As with other pro-Euro groups, Ministers also denied that the vote would have any significant impact on EMU: 'Irrespective of the outcome of the Danish referendum, the economic and monetary union is a reality and a great project for the European integration, which will ensure a sound and job-intensive growth.' Echoing Ministers' sentiments, Romano Prodi, President of the European Commission, said in a Press Release that: 'The Danish people have confirmed that they do not want to adopt the Euro as their currency. The Commission regrets this decision and I firmly believe that a positive vote would have been in our common interest.' He also stated that the 'good results' achieved since the single currency was adopted in January 1999 'will not be affected by the Danish decision'. In a brief Press Release, the President of the European Central Bank emphasised that 'this will not in any way affect the co-operation between Danmarks Nationalbank and the European Central Bank.' Danish Economics Minister Marianne Jelved was reported as saying she 'could not envisage a second referendum until after general elections that must be held by March 2002.' Other views were reported by the BBC, eCountries.com, Financial Times, The Guardian and The Independent. The Confederation of Danish Industries issued a brief statement expressing disappointment at the outcome. Interviewed shortly after the result was announced, UK Minister for Europe, Keith Vaz, preferred to express no opinion on it, but emphasised that the UK Government is in favour of joining a successful Euro 'when the conditions are right'. Foreign Secretary Robin Cook, writing in The Independent, said 'The Danish referendum changes nothing in Britain.' The Prime Minister of Sweden, Goran Persson, told the BBC that he hoped 'people around Europe will perceive this as a purely Danish decision'. However, according to Robin Oakley, CNN.com European Political Editor, the vote could signal the start of 'two-tier Europe'. The BBC website summarises views on the implications of the Danes' decision. Their Europe Correspondent, Justin Webb, reported:
Further information within European Sources Online: European Sources Online: European Voice: The Penguin Companion to European Union (Penguin, 1998): EMU Facts, Challenges and Policies (OECD, 1999): EU Law (Penguin, 1999): OECD Economic Outlook (OECD, May 2000): OECD Economic Survey: Denmark (OECD, 2000): Further information can be seen in these external links: Daily Telegraph: Danish European Movement: Dansk Selskab for Europaforskning: ECountries.com: European Commission: DG Economic and Financial Affairs: European Industrial Relations Observatory Online (EIROnline), April 2000: European Sources Online: Financial Times: The Guardian: New Europe [Europe yes, Euro no] Time Europe: United Kingdom: HM Treasury: Further and subsequent information on the subject of this week's In Focus can be found by an 'Advanced Search' in European Sources Online by inserting 'referendum and euro' in the keyword field. Eric Davies In a referendum on 28 September 2000, voters in Denmark rejected joining the Euro by a majority of 6.2%. A reported turnout of 88% registered 53.1% against joining the Euro, with 46.9% in favour. |
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Subject Categories | Economic and Financial Affairs |
Countries / Regions | Denmark |
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