Denmark pays crisis price for non-euro status

Denmark is paying a political and economic price for being outside the euro zone during the global financial crisis, Prime Minister Anders Fogh Rasmussen said on Wednesday.

Speaking before a European Union summit in Brussels, he reaffirmed his intention to hold a referendum during the current parliamentary term, which runs until 2011, on joining the single currency.

"During a period of turbulence, the cost of staying outside the euro becomes very visible. I have already mentioned the political cost — lack of influence," Rasmussen told reporters.

"In addition to that, I could mention the economic cost — today's interest rates in Denmark are about 1 percent more than in the euro zone because of the turbulence in the financial markets."

Rasmussen had intended to hold a referendum this year on ending Denmark's opt-outs from EU treaty provisions on defence, justice and home affairs as a prelude to trying to reverse a 2000 popular vote against joining the euro.

But he put off the plan after Irish voters rejected the EU's Lisbon reform treaty in June, highlighting the unpredictability of referendums on European issues.

Asked when that vote would now take place, the Danish leader said: "It is premature to say. It very much depends on the clarification of the Irish situation."

Rasmussen said he had no criticism of the fact that the 15-nation Eurogroup had taken the lead in organising a concerted response to the credit crisis after last week's stock market crash.

"On the contrary, it was a very good idea that Eurogroup gathered and took concerted action but it shows the political cost because we were not part of it," he said.

"It's an indication of the cost of staying outside of the euro zone, the political cost, the lack of influence. It is a strong argument that Denmark should join the Eurogroup."

All Denmark's mainstream political parties support joining the euro, but public opinion is more divided, according to opinion polls.