Copenhagen/Brussels, 29/09/2000 (Agence Europe) - During the referendum on 28 September, on Danish accession to the single currency, the "no" vote won more significantly than foreseen: 53.1% of Danes said "no" to the Euro and 46.9% "yes". The rate of participation was 87.9%, one of the highest of the six referendums on Europe that have taken place in Denmark since 1972.
At 22: 45, the Danish Prime Minister Poul Nyrup Rasmussen, who was totally engaged in the "yes"' campaign, said he was disappointed with the result, before the members of his party and before the press: it is a defeat for us, for me as Prime Minister, for us as Social Democrats, he asserted, visible very affected. At the same time, Mr Rasmussen said he was happy that the Danes went to vote is such numbers: "the people expressed themselves, our task is to respect the result", he asserted. Also he added: this result does not mean that "the Danish people have turned their back on Europe", we will continue to work to maintain our place in Europe". Mr Rasmussen, in admitting that the fears to the fate of the Danish welfare State weighed considerably on the referendum campaign, he declared: the government has understood this and we will try and "draw bridges" between those that say "no" and those that say "yes". We are scared for Danish society, and it will be necessary to debate, also in the Parliament, said Mr Rasmussen, while underlining: we are not divided, our task is to move forward together. We are sending a clear signal, we are ready to defend the Krone and to maintain our monetary policy (within the EMS - 2: Ed), asserted the Prime Minister. Further underling that, before the Nice Summit, the government will continue to defend Danish interests, he remarked: it would be a good idea to work on the division of tasks between the national level and Community level.
The Minister for Foreign Affairs Niels Helveg Petersen also asserted that, "our duty is to defend Danish interests", noting: "I will do so, but it will be harder". According to him, following the results of this referendum, Denmark will, in the long-term, have less influence in Europe: I will try and explain, but the people have taken their decision, said Mr Petersen
Euro Group respects decision of Danish people, but regrets it
On Thursday evening, the Euro Group Finance Ministers and the Commissioner for Economic and Monetary Affairs Pedro Solbes published, with the President of the ECB Wim Duisenberg, the following press release: "The Finance Ministers of the Euro Group and the Commissioner respect the decision of the Danish people, but they regret it. This decision does not permanently close the door to future accession. The Ministers and the President of the European Central Bank note with satisfaction the Danish authorities are determined to maintain the Danish Krone in the European Exchange Rate Mechanism within the existing tight margins for manoeuvre. Thus the Euro will remain the reference for monetary policy and the Danish authorities will continue as before o benefit, in time of need, from the assistance of the European Exchange Rate Mechanism. Beyond the Danish referendum, the Economic and Monetary Union is a reality and a major project for European integration allowing for strong growth and job creation".
Wim Duisenberg also made a separate statement in which he asserts: "I take not of the choice expressed by the Danish voters during the referendum (…) this decision will not affect in any way the cooperation between the Danmarks Nationalbank and the European Central Bank".
Mr Prodi feels that situation of Euro will not be affected
After having heard the remarks of Mr Rasmussen, the President of the European Commission Romano Prodi made a statement to the press and answered it questions. Mr Prodi said: "The Danish people confirmed that it does not wants to adopt the Euro as its currency. The Commission regrets this decision, and I strongly believe that a positive vote was in our common interest. I welcome the fact the Danish authorities are not considering modifying the conditions in which the Krone will take part in the European Exchange Rate Mechanism. I also hope that Denmark will continue to pursue an economic policy based on macro-economic policy which closely reflects the policies and objectives of the Euro area. Since January 1999, the Euro is the currency of eleven Member States. Soon they will be twelve. The good results already achieved over the last twenty one months will not be affected by the Danish decision: - the
economic fundamentals of the Euro area are the best for a generation; - employment increases constantly and the budgetary situation is increasingly robust; - the Euro has established itself on the financial markets as a world currency, and the volume of bond issues is similar to that of the US dollar; - the deepening of the Economic Union continues to be our main task; - the economic reform process has started. It will be reinforced; - the capability to resist external shocks, such as the increase in oil prices, must also be reinforced. I am sure that the Euro Group will continue its good work and will contribute to the deepening of the Economic and Monetary Union. The Commission will actively promote this process, while maintaining the cohesion of the Union as such".
Is the Danish decision on the on the Euro final? "It is not final", said Prodi when answering a question, while adding that it is for the Danes to "decide how to express their will". According to him, following this decision, there is no "major change" in the situation as it exists, even if he feels that in the future "the Danish economy will not be favoured by this decision". At the same time, the question of knowing if the Danish "no" encourages the development of reinforced cooperation, he said: yes, "I think that reinforced cooperation will be very helpful in giving strength and flexibility to Europe". In this affair, has the Commission done enough? "We have done nothing, we must respect the decision of the Danish people, the sovereignty of the people, it must always be respected", replied Romano Prodi. As for the impact of this referendum on the United Kingdom and Sweden, Mr Prodi felt that the situation is not completely the same and, while recognising that here could be some "psychological influence", he did not want to "extrapolate" these results. The question of knowing if this result could have a negative effect on the enlargement process, Mr Prodi answered: "on the contrary the candidates will understand that the will of the people is respected; it is a guarantee of democracy". The door remains open for Denmark, "nobody has excluded Denmark", added Mr Prodi, while underling that, in the meantime, the Euro Group will continue to work towards improving the economic and monetary policy instruments,. The fundamentals of the Euro area are good, he repeated, saying he was convinced that public opinion would change at the right time. Questioned on the decision by Saddam Hussein to abandon the dollar for the Euro in commercial transaction by Iraq with the outside, Mr Prodi said: "It is Saddam Hussein's decision… Though I am confident that it will soon be the reference currency for many countries, especially from the Mediterranean, which is so close to Europe: it happen be very soon".
As for Commissioner Pedro Solbes, in answering during the same press conference questions on the possible speculation on the Danish Krone, he wanted to remind that Mr Rasmussen had indicated that the Krone would be maintained within the EMS-2 in the same condition as now.
Mrs Fontaine: EMU "has no desire to be a reinforced cooperation"
The President of the European Parliament, Nicole Fontaine asserted: "I respect the choice of the Danish people as it is theirs, but is infinity regret it (…) EMU has no desire to be a reinforced cooperation (…), it is a necessary addition to the Internal Market". Mrs Fontaine noted that, during the campaign by the anti-Euro group, we could hear arguments revealing their "irrational fears": fears of change, loss of identity, fear of losing sovereignty. "These fears have (…) no objective basis. The education, health, social protection systems - including pensions - lie with the competence of each States (…) and will remain so, in accordance with the principal of subsidiarity". Finally, Mrs Fontaine felt that, "as was the case for the Maastricht Treaty, a second opportunity could be offered to the Danes to once more vote on the Euro".
Other reactions, notably from European parties and MEPs
The European Socialist Party, in a statement from its President Rudolph Scharping and the President of European Parliament Socialist Group Enrique Baron, asserted: "We fully respect the decision of the Danish people which does not want to take part in the Euro at this stage. The judgement over what is in the best interest of Denmark is an affair that concerns the Danish people, but Denmark remains free to join the Euro area at a future date. Even if we regret this vote, it is neither a threat nor a step back from economic and monetary cooperation in Europe (…) the Euro is here for good. It will continue, and it will increase in strength as Europe widens and reinforces its integration". The Danish "no" s regrettable, but it is not a reason to panic, felt the German Social Democrat Christa Randzio-Plath, President of the EP Economic and Monetary Committee, while affirming that Europe must "better accompany the Euro" politically. For the President of the EPP group, Hans-Gert Pottering, the Danish vote confirms that the governments and Member States must still do a great deal of work to inform and persuade the public opinion: this "psychological signal" must be take seriously, he said.
British Conservative Theresa Villiers affirmed that the Danish "no" shows still more clearly that single currency is not inevitable "either for them or for us". She congratulated the Danish people for having defended its right to self government without allowing itself to be dominated by Brussels.
UEF: Danish "no" strengthens the need for European vanguard
The Union of European Federalists regretted that the Danes had "not understood the need to share monetary sovereignty within a large European single market" and, while noting the "democratic vote", it considers that the political consequences should be drawn. Although it is legitimate for a people not to wish to go any further in integration, it would be "anti-democratic" for it to prevent the others from doing so, said the UEF. Its president, Jo Leinen, requests that, from the Biarritz and Nice Summits, the EU Heads of State or Government should allow the creation of a "vanguard" in Europe.
Reactions in Sweden and the United Kingdom
In Sweden, Prime Minister Göran Persson acknowledged that the Danish decision will have a "certain impact on the debate in Sweden, but not on our decision to hold a referendum and when" (Ed.: It is at any rate clear that it will not be during the Swedish Presidency, during the first half of 2001). Tony Blair, for his part, said this decision does not have any impact on his country's position (where a referendum is planned in principle for autumn 2002, at the beginning of the next legislature).