Denmark will keep its fixed exchange rate policy and the Danish krone will remain linked to the euro despite the referendum vote rejecting formal participation in the single European currency, the Prime Minister, Mr Poul Nyrup Rasmussen, has said.
"The fixed exchange rate policy is the foundation of Danish economic policy," he told a news conference yesterday. He described the Danish central bank's half-point increase in interest rates, which was announced earlier, as a responsible and wise move. A special government task force led by the Economy Minister, Ms Marianne Jelved, the Finance Minister, Mr Mogens Lykketoft, and the Foreign Minister, Mr Niels Helveg Petersen, is to monitor reaction to the referendum result on financial markets.
"We will monitor the financial markets today, and in coming months, very closely," Mr Rasmussen said. "We hope and believe that the markets understand that Denmark has a strong economy and that we will maintain the fixed exchange rate policy."
Denmark has maintained a fixed exchange rate regime for 18 years. The Danish krone has been tied to the euro in a plus or minus 2.25 per cent fluctuation band since the European currency was launched in January 1999.
In Thursday's referendum formal membership of the euro zone was rejected by 53.1 to 46.9 per cent. Twelve EU members, including Ireland, have accepted the common currency but Denmark, Britain and Sweden remain outside.
There was some surprise in Danish newspapers at the margin of victory for the No side, considering that polls were predicting a 50-50 result up to the last minute.
Politiken described the vote as "surprisingly large", adding that the challenge now facing the Prime Minister was to create a broad national consensus on European policy: "Calm will eventually descend while half of Denmark celebrates and the other half grieves. When will we find a new way forward?"
Kristeligt Dagblad reported: "The Danes have ignored the advice of politicians and voted No to the euro." The paper Information called for "an in-depth discussion on both Denmark's role in the EU and on the parliamentary crisis which has arisen".
A call for the EU to "slow down the train of integration, for the good of all" was made by the leader of the nationalist Danish People's Party, Ms Pia Kjaersgaard.
The DPP won 7.4 per cent of the vote in the 1998 general election and holds 13 out of 179 seats in parliament, but this may increase next time because of Ms Kjaersgaard's high profile on the No side in the referendum. "The victory that we have won is one for democracy and for the Danish people against an elite," she told cheering supporters.
The European Commissioner with responsibility for enlargement, Mr Guenter Verheugen, said the vote would not be allowed to upset the enlargement process but added that the EU needed to develop more transparent decision-making.