Denmark avoided massive euro bill

Economists calculate that Denmark would have had to dole out an additional 338 billion kroner if it had adopted the euro Economists are claiming that it was fortunate Danes voted against adopting the euro in the 2000 referendum. “It was...

Economists calculate that Denmark would have had to dole out an additional 338 billion kroner if it had adopted the euro

Economists are claiming that it was fortunate Danes voted against adopting the euro in the 2000 referendum.

“It was smart then but it has shown to be even smarter than we had thought,” Christian Bjørnskov, a lecturer in international economics at Aarhus University, said.

Christian Blaabjerg, chief economist at FIH Erhvervsbank, agreed.

“The bill that Denmark would have been handed is enormous compared with our GDP,” Blaabjerg said. “Very few people want to join a club whose membership fees rise at an unknown rate.”

The economists provided calculations to Jyllands-Posten newspaper showing how much Denmark would have had to stump up to bail out debt ridden EU countries if Denmark had adopted the euro.

The calculations show that had Denmark been in the monetary union it would have had to pay 338 billion kroner to bailout other Eurozone members.

This sum consists of 87 billion kroner and 95 billion kroner, respectively, for to the two financial stability funds, the ESM and the EFSF.

Denmark would also have had to contribute to the European Central Bank’s purchase of government bonds from the troubled countries. This would have amounted to 156 billion kroner.

“There is no-one else to pay the bills except the euro countries and we are exempt because we never adopted the euro,” Bjørnskov said, adding that the common currency had problems from the start.

“The euro is a construction that encourages countries to behave irresponsibly, since eurozone countries are liable for each other’s debt, regardless of the political promises they make.”

Marianne Jelved, former leader of the Radikale party, who were supporters of the euro at the time of the 2000 referendum, still supports adopting it even though she acknowledged that much had gone wrong.

“The problem is that many countries didn’t stick to the rules. If they had there wouldn’t have been the problems we are experiencing today. Germany and France moved off track in the early 2000s and as soon as that happened we lost our discipline.”

 

Andre læser

Mest læste

Mest læste Finans

Giv adgang til en ven

Hver måned kan du give adgang til 5 låste artikler.
Du har givet 0 ud af 0 låste artikler.

Giv artiklen via:

Modtageren kan frit læse artiklen uden at logge ind.

Du kan ikke give flere artikler

Næste kalendermåned kan du give adgang til 5 nye artikler.

Teknisk fejl

Artiklen kunne ikke gives videre grundet en teknisk fejl.

Ingen internetforbindelse

Artiklen kunne ikke gives videre grundet manglende internetforbindelse.

Denne funktion kræver Digital+

Med et Digital+ abonnement kan du give adgang til 5 låste artikler om måneden.

ALLEREDE ABONNENT?  LOG IND

Denne funktion kræver Digital+

Med et abonnement kan du lave din egen læseliste og læse artiklerne, når det passer dig.

Teknisk fejl

Artiklen kunne ikke tilføjes til læstelisten, grundet en teknisk fejl.

Forsøg igen senere.

Del artiklen
Relevant for andre?
Del artiklen på sociale medier.

Du kan ikke logge ind

Vi har i øjeblikket problemer med vores loginsystem, men vi har sørget for, at du har adgang til alt vores indhold, imens vi arbejder på sagen. Forsøg at logge ind igen senere. Vi beklager ulejligheden.

Du kan ikke logge ud

Vi har i øjeblikket problemer med vores loginsystem, og derfor kan vi ikke logge dig ud. Forsøg igen senere. Vi beklager ulejligheden.