PREVIEW: Denmark aims to "bridge" differences during EU presidency

By Lennart Simonsson Dec 28, 2011, 6:06 GMT

Copenhagen/Stockholm - Denmark is aspiring to serve as a 'bridge' when it takes over the six-month rotating presidency of the European Union on January 1 - the second non-euro country in a row to lead the bloc amid tensions over the single currency's debt crisis.

Denmark has been a member of the EU since 1973, but voters in the 5.5-million-strong country have twice rejected replacing the Danish krone. Denmark and Britain are the only EU nations that are not legally bound to adopt the euro, having secured treaty opt-outs.

A recent poll commissioned by the Danske Bank showed that Danish opposition to introducing the euro remains strong, with 71 per cent of those polled either opposed or likely opposed to the euro.

'This is a consequence of the ongoing debt crisis,' Dansk Bank's chief economist Steen Bocian told dpa. 'At the moment, Denmark is even able to have a lower interest rate than Germany.'

Meanwhile, moves are underway to strengthen integration in the 17-member eurozone to avert future crises, with non-euro nations also invited to join a new fiscal compact.

Britain raised eyebrows in Brussels by immediately ruling out its participation. Denmark joined other non-euro countries in saying that their parliaments would have to take up the matter.

Diplomats noted that even though Denmark may not use the common currency, its economy is closely linked to the euro. Copenhagen has 'no illusions' about being 'completely independent,' one diplomat said in Brussels.

Going forward, it hopes to serve as a 'bridge' between members of the eurozone and those outside, Danish EU Affairs Minister Nicolai Wammen said recently in Brussels.

There are questions, however, about how much influence it will wield, with the Financial Times reporting that French President Nicolas Sarkozy dismissed Prime Minister Helle Thorning-Schmidt at the last EU summit with the words: 'You're an out, a small out, and you're new. We don't want to hear from you.'

Thorning-Schmidt's left-leaning coalition, which took office in October, is focused on steering clear of any moves that would trigger a referendum back home, partly because it is internally split.

While the premier's Social Democrats and the Social Liberals are EU-friendly, the Socialist People's Party is more sceptical. The coalition's parliamentary backer, the leftist Unity List, is even more so - a leading party member has called for a referendum on whether Denmark should join the fiscal compact.

Under the Danish constitution, a plebiscite must take place if a legal review establishes that sovereignty is being transferred from Denmark to the EU.

But the country's unusual opt-outs - which also cover the areas of defence and justice and home affairs - could help Denmark be cast as 'neutral' and not pushing its own agenda, according to Peter Nedergaard, a political science professor at Copenhagen University.

The domination of the euro crisis may end up being the bigger challenge, diplomats predicted, noting that it will for instance be difficult to 'focus minds' on the behemoth quickly approaching on the EU's horizon - the budget for 2014-2020.

Nedergaard, who has studied EU issues for 25 years, told dpa that the budget work is unlikely to be completed during Denmark's term due to the French presidential elections in May - France has a big stake in the budget.

Denmark has held the EU presidency six times before, most recently in 2002. Since then, the bloc has changed significantly, most notably in size: it now comprises 27 countries, following the conclusion of accession talks with 10 new members during Denmark's last term.

The Lisbon Treaty in 2009 also created new institutions, including the European Council and its permanent president - a position currently held by Herman Van Rompuy - taking away power from the holder of the rotating presidency.

Nedergaard expects this six-month term to be 'a more normal presidency' for Denmark than in 2002, given the lack of 'a really big decision' on enlargement like the last time around.

Thorning-Schmidt said her country aspires to 'strengthen the EU in a difficult time.'

'Now more than ever, we need to work together in the EU,' she said in a welcome message on the Danish presidency's website. 'We must restore confidence, security and optimism.'

Further information is available at: http://eu2012.dk

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