Danish PM under fire on EU plea

A storm blew up around the Danish government yesterday after national television and radio stations claimed the Prime Minister…

A storm blew up around the Danish government yesterday after national television and radio stations claimed the Prime Minister was about to make a plea to his European partners to confirm they would not tamper with his country's generous welfare system.

As Mr Poul Nyrup Rasmussen's flagging Yes campaign to sign up to the euro slumped further behind in the opinion polls, it was reported he was about to send letters to the 14 other European Union government leaders asking for confirmation that his country's welfare policy would remain under national control.

Throughout the day, the Prime Minister's office refused to confirm or deny the story. It is understood a member of the Prime Minister's staff leaked the details of the letter to one national television station and the report was picked up and broadcast by rival television and radio stations.

The latest embarrassing twist to Mr Nyrup Rasmussen's faltering attempt to win support for a Yes vote in next week's referendum on the euro came after an opinion poll showed the antieuro side had widened its lead over euro supporters to 12 percentage points.

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Other Danish euro supporters fear this latest controversy would destroy Denmark's chance of entering the single currency by handing victory to the No campaign in the referendum on September 28th.

Mr Nyrup Rasmussen's attempt to enlist other leaders in his campaign for a Yes to the euro was described as "embarrassing" by opposition politicians. The move was seen as an attempt to counter persistent claims by opponents at home that the single currency is a threat to Denmark's welfare state.

Welfare entitlements, particularly old-age pensions, have dominated the euro agenda for several days and overshadowed other aspects of the referendum campaign.

On Monday, in order to cap the debate, a majority of mainstream political parties agreed to sign a pledge not to tamper with Denmark's social welfare structure in the future.

The Prime Minister drew strong criticism yesterday from his allies as well as opponents in the referendum campaign. The Liberal party, an opposition party which is fighting alongside the government for a Yes vote, said the idea of a letter was counterproductive in that it kept welfare worries in the headlines. Ms Mimi Jacobsen, leader of the Centre Democrats, a centre-right champion of the single currency, said Denmark risked becoming the laughing stock of Europe.