Denmark ‘plans to sign up to fiscal treaty’
The Danish government is planning to sign up to a fiscal union treaty although it has problems in a number of areas, according to the country’s finance minister.
Speaking in Copenhagen today (9 January), Margrethe Vestager, the finance minister of Denmark, which took over the presidency of the Council of Ministers on 1 January, said: “We are negotiating [the treaty] in order to be able to join.”
Twenty-six EU member states are currently negotiating a fiscal union treaty that will enshrine tough budget discipline commitments. They include writing a commitment to balance national budgets – the so-called golden rule – into a country’s constitution or equivalent legislation.
Vestager said it was very difficult for Denmark to change its constitution to include a golden rule. It would require the support of the current parliament as well as from a new parliament formed after elections and a referendum.
Verstager said that the Danish government was considering incorporating the golden rule into national law.
“We’re trying to find ways to make the legislation as solid as if it was in the constitution,” she said. This could take the form of a general law on Denmark’s budget for several years to come, she said.
Vestager, who will be chairing meetings of EU finance ministers, said that Denmark had an issue with the draft treaty’s rules on balancing budgets. The current draft says that countries cannot run deficits larger than 0.5% of their gross domestic product.
Vestager said that the European Commission calculated the deficit in a different way from the Danish government. She said that if the Commission’s method was used it would cause “fluctuations” in the level of Denmark’s deficit.
Vestager said that several member states were also looking for a clearer definition of exceptional circumstances for deficits.
The treaty is being negotiated by 26 EU member states after the UK vetoed plans to revise the EU’s treaties to incorporate the changes.
Vestager said that signing up to the treaty would not affect Denmark’s opt-out from joining the euro. Denmark would remain outside the euro until a decision to scrap its opt-out was approved by referendum, she said, adding that there were no plans to hold such a referendum.
Click Here: All Blacks Rugby Jersey