Denmark’s Prime Minister, Anders Fogh Rasmussen, has announced that he hopes a referendum will be called to decide whether Denmark should join the eurozone, and adopt the euro as its official currency. Rasmussen hopes to ensure cross-party support for the idea before calling a referendum – especially from the Socialist People’s Party, which opposed the move in the last referendum in 2000. There are currently 15 member states in the eurozone, and the recent global financial crisis has put the issue at the forefront for many smaller countries who are feeling the pressure.
Iceland’s recent banking meltdown helped push the possibility of adopting the euro in Denmark into public discussion, which wouldn’t happen until 2011 at the earliest. Rasmussen told EurActiv at the European Liberal Democrats’ yearly congress in Stockholm: “The financial crisis has made it visible that there is a clear cost of staying outside the eurozone.”
“The decisions taken by the Eurogroup have a direct effect on Denmark, without Denmark having a seat at the table,” the prime minister explained, offering 2011 as a potential date for a referendum on the issue. The Danish PM himself is a strong supporter of joining the euro, but notes that it will never happen without the consensus of the Danish people.
The last time a referendum was held concerning the euro, Danes voted to keep their Danish krone by a margin of 53 per cent to 47 per cent. This suggests that many Danes are in favour of joining the single currency, and in the wake of the ongoing banking crisis it may be just enough to tip the scales in favour of the euro.
[…] Denmark considering joining the eurozone […]
“I could not learn english because people in my country learnt french on those years”
In Spain? I didn’t know that. Sry.
“What you have learnt came from Wikipedia!!?”
No. But the Wikipedia articles says much more about the problem than what you wrote here so far. You stated several times that the Icelanders should simply peg their krona to a foreign currency, without mentioning any of the problems involved in this. And you are surprised I didn’t believe you’re an expert?
“Well, when I was twelve, I concentrated on learning english…”
When I was twelve, I could not learn english because people in my country learnt french on those years: you know! History of the countries is different in Europe: lights, shades; on lights and darkness, people of your country learnt so much; also my country learnt, but our darkness was so different: our darkness did not damage other countries, neighbors, … !
And, yes, really you learnt english because your time for economic lessons was poor, very poor.
“Maybe. And whose fault is that? Hmm, do you translate your text using Google or something?”
If you do not understand my words, … Do you answer texts and you do not know what it means ?!! Really?!!
“Sry, I don’t give lessons. Educate yourself”
But, if you tried to give lessons ABOVE!!! Do not you remember? I have said ‘ YOU TRIED ‘ ; really, you could not give lessons of economy and fix exchange rate!!
What you have learnt came from Wikipedia!!? You speak about Google, and, you do learn economy and fix exchange rate on Wikipedia ??!!!
You are joking!!!
“I learnt these things when I was 12!”
Well, when I was twelve, I concentrated on learning english…
“I see, you have not understood my words”
Maybe. And whose fault is that? Hmm, do you translate your text using Google or something?
“I am wishing to learn your lessons about these themes.”
Sry, I don’t give lessons. Educate yourself:
http://en.wikipedia.org/wiki/Fixed_exchange_rate#Maintaining_a_fixed_exchange_rate
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You mean there will be places on the planet more economically devastated than Iceland or
Iceland would be a haven for people with some Kevorkian fixation?
A cosy winter night sleeping on the beach, dig a hole in the sand and let the tide take care of your troubles.
Thanks for your lesson.
I learnt these things when I was 12! Some decades later, I am learning same things again, so thanks!!!
I see, you have not understood my words: nothing; anyway, thanks!
Since you will be my new teacher now … please, could you tell me where did Estonia look for money, reserves, years 1993 – 1999, to fix its currency to deutsche mark? Same thing from Lithuania, and its currency: first to dollar; later to Euro. And, please, also could you explain Belgium and Luxembourg agreements? And, please could you explain fix change rate for Austrian Schilling to German currency? I am wishing to learn your lessons about these themes. Thanks!
“Almost ruined the Bank of England”
Really?! Or, policy of British government was a disaster, threw towel because had been mistaken, and closed the eyes?!!! Devaluation in days of recession is a life-guard!! And british government knew it. Really, did it fight? Or let itself take!!
IF Iceland wants to join the Euro, first they must have national inflation below 3% and they must float the ISK. I think the ISK might end up being over 300 to the Euro. This would destroy Icelands economy. Plus, Iceland would have thousands of Polish folks, and other desperate Eastern Europeans looking for jobs, sleeping on park beaches, using your health care system etc etc etc etc etc etc etc etc….’be careful what you wish for(joining the EU), you might get it’.
“if it is pegged to the Euro, why a small and expensive currency if Danish inflation is similar to the one in the E.U.”
Spaniard, pls, educate yourself about currency policies before posting such, uh, uninformed gossip. A government can’t simply declare “120 kronas are worth 1 Euro” and rely on market players to simply follow this rule. The value of a currency is setermined by supply and demand. And if the official exchange rate doesn’t reflect the real market value, there will be a black market where money is traded. Or it will be profiable to lend money in that currency and pay it back later, when the rate has gone down. So, speculants will exploit the difference between the rates and make huge profits, until the government is broke. That’s how George Soros made his billions, by the way. Almost ruined the Bank of England.
That’s why simply declaing to “peg” a currency doesn’t work. You need hundreds of millions, if not more, to defend the rate. And Icelands central bank simply doesn’t have the money. The artificial rate right now comes with a high risk.
Would be a mistake if Denmark adopt Euro? Danish currency is pegged to Euro, and, if it is pegged to the Euro, why a small and expensive currency if Danish inflation is similar to the one in the E.U.? Swedish and Norwegian currencies offer dances to Euro but, danish currency? . I think, is a romantic thing enjoying national currency, these days. Even in next danish banknote series, subject will be about bridges : idea from Euro banknotes! Why more time?
By the way, Icelandic Central bank has been obsolete and austere in things, and too modern in others.
Central Bank has been so obsolete, not even a modern series of banknotes has been made. And now? New monetary reform: 1/100; adopt the Euro; new banknote of 10000 krona, even 20000? Or, none?
Somebody said, ‘if a 10000 krona banknote were coming, inflation would increase’: what so stupid thing! Banknote of more value does not mean that Central bank must put much money at streets, only necessary. Simple rule as: each four banknotes of 5000 krona, one will be 10000 krona, and two of 5000! So, Icelandic banknote will not be 30 euro – 5000 krona -, only! A “rich” country and only a banknote at euro 30? Ummm, everybody credit cards: this thing would have to change; later, rare and dangerous things are present: people can not spend what they do not have!
Hallelujah!
When Iceland will be back on her feet, and the ISK stabilised, I hope they will make the wise decision to joint the EU and the €zone, if of course the giants of the EU (France and Germany) will allow them to join!
Well let’s not get carried away here, all political partes have issued statements that it would not be “responsible” to start a debate on the EURO in the midst of financial turmoil.
That decision should grow out of political reasons and not financial ones.