Euro Adoption Growing Support In Denmark

 

Denmark is seeing increasing support for the Euro adoption as the Danish Central Bank Governor Nils Bernstein said it would not cause significant economic disruption, which is what many people worry about. In 2000, the Danes narrowly voted against replacing the Krones with the Euro. The krone has been linked with the Euro since its introduction in 1999. Over the long run, adopting the Euro would have an overall positive growth effect in Denmark for both the residents as well as economic growth in the country.

 

The Global Financial crisis has exposed Denmark status as being a non-Euro member and pushed some of the disadvantages to the forefront. One of those is the inability to be able to vote on interest rate decisions that affect the residents and the businesses in the country. By being able to join as an Euro member they will have a bigger voice in the decision making process that is made. Bernstein also indicated that participation would most likely lead to lower interest rates. The prime minister has also indicated that another referendum will be introduced before his term ends in 2011. It looks like the Euro in some form will be a big part of the Denmark monetary system in the very near future.

Because of the Global crisis Denmark was forced to raise interest rates because of the krones lessening value. In the end the Euro could be the krones best friend before all is said and done.

 

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