Copenhagen, 10/01/2012 (Agence Europe) - On Tuesday 10 January, Denmark's Economy Minister Margrethe Vestager and Finance Minister Bjarne Corydon said that although Denmark wants to be part of the 26-country budget pact under negotiation (all member states bar the UK), it might be tough to introduce in the country.
The two politicians explained that it would be very difficult to introduce the golden rule in Denmark because it would require a time-consuming and complicated change to the Danish constitution. Corydon said there was no politically realistic way of changing the country's constitution, and Vestager pointed out that it would require not only dissolving parliament and electing a new one, but also the holding of a referendum. This type of event only happens once in a blue moon, she added. The two politicians said that Denmark would have trouble with the clause allowing countries' structural deficits to be no higher than 0.5% of GDP because Denmark uses different calculation methods from the European Commission.
Lengthy ratification process. Vestager said that although agreement in principle by all 26 countries is planned for March 2012, the ratification process involves national parliaments and/or referendums, and this all takes time. The question of referendums in Denmark is not clear because unless changes are required to the Danish constitution, then the decision can be taken by the parliament in theory, but some political parties are challenging this. Pia Adelsteen of the Danish People's Party said she thought Danes didn't want a common budget policy and this had to be borne in mind. Merete Riisager of the Liberal Alliance said the budget pact should not be backed because monetary union was not successful and there was no guarantee that budget union would be either.
Ministers, along with parliamentarians on the Danish parliament's European affairs committee, point out that the pact would not be enough in itself and green growth stimulus would be required. Lisbeth Bech Poulsen of the Socialist Popular Party said that many things need to be introduced, including intelligent rules for the financial sector. (CG/transl.fl)