Danes may reject euro in currency referendum

By JAN M. OLSEN, Associated Press

COPENHAGEN, Denmark (September 15, 2000 4:20 p.m. EDT http://www.nandotimes.com) - Danes are leaning toward keeping their currency and rejecting the euro in a national referendum -- a major test of confidence for the vision of a complete monetary union for Europe.

With the Sept. 28 vote less than two weeks away, four polls on Friday showed that 4 to 9 percent more of those questioned were opposed to the common currency than those favoring it.

However, each poll found a considerable number of undecided voters, indicating the result of the legally binding plebiscite promises to be close. The polls had margins of error of about 3 percentage points. Still, Jens Peter Bonde of the June Movement to reject the euro said this week: "We don't mind the trend we see."

In five plebiscites on European Union issues, Danes have shown that they want to stay in the union but are cautious about the terms.

In 1992, Danes stunned fellow E.U. nations by rejecting the Maastricht treaty for a common currency. A year later, Danes adopted a revised treaty that allowed them to stay outside the European Monetary Union.

The Sept. 28 vote will decide whether Denmark will join 11 other European Union countries, including Germany and France, in giving up its currency for a regional European Union one.

The vote will also be watched in Britain, Sweden and Greece, who have not adopted the euro. A Danish rejection could bolster similar sentiment elsewhere.

One-third of the voters surveyed in one poll said they were influenced by the euro's weakness.

Since its introduction in January 1999, the euro has plunged 27 percent, hitting a record low 85.53 cents on Tuesday. At its introduction 21 months ago, the euro traded at $1.16. The euro is now used for corporate and investment transactions. Coins and bank notes will come into use in 2002.

Leading Denmark's euro charge is Prime Minister Poul Nyrup Rasmussen and his Social Democratic-led government. Big business, trade unions and opposition political parties also endorse the euro as a way to promote trade, economic stability and regional integration.

"We have a country that is strong, but not strong enough to stand alone. If we say 'no,' our fate will be put in someone else's hands," Rasmussen said, meaning the krone might be less resistant than the euro to international currency speculation.

Krone supporters say they are resisting a United States of Europe where social benefits will be undermined and Denmark's sovereignty eroded.

They say a "yes" vote would shift decision-making to the European Central Bank in Frankfurt, Germany, and to European Union headquarters in Brussels, Belgium.

"We don't know what the euro will bring us," said Gert Boergesen, a retired city worker, 67. "We're satisfied with our krone and our healthy economy, so why replace it?"

"Our welfare is based on high taxes," said Niels I. Meyer of the June Movement. "If we say 'yes' to the euro, the E.U.'s next step will be to reduce taxes to level them with other E.U. nations. That's the danger."

Danes have generous retirement pensions, free medical care and schooling from kindergarten to university, long parental leaves for child care, and high unemployment benefits. They also pay high taxes. Only Swedes pay more.

http://www.nandotimes.com/noframes/story/0,2107,500257749-500396243-502361501-0,00.html

-- Carl Jenkins (Somewherepress@aol.com), September 16, 2000