Denmark Rejects European Currency

ByABC News
September 28, 2000, 7:10 PM

C O P E N H A G E N, Denmark, Sept. 28 -- Denmark rejected the euro in a historic referendum today, with opponents of the single currency saying the vote was a snub to Europes elite.

With 96 percent of the votes counted, the anti-euro no vote was put at 53.1 percent against 46.9 percent for a yes.

The result is likely to dent confidence in the beleagueredsingle currency and could reshape Europes political landscape.

But European Union leaders and monetary chiefs were quick to dismiss the impact of the referendum. French Prime Minister Lionel Jospin said Denmark was a small nation and a no result posed no problem for the euro.

The euro fell below 87.80 cents as the no count stacked up, but economists said the currencys downside was limited by the threat of central bank intervention.

For the second time in less than a decade, one of Europessmallest, richest, but fiercely independent nations had thumbed its nose at those trying to drive the EU toward closer integration.

A Snub to the Elite

Jubilant anti-euro campaigners heralded a win, whilesomber government ministers, who had fought hard to make Denmark the 13th member of the euro zone, warned the result could split Europe in two.

This is a great victory for the Danish people and a snub to the elite, said Pia Kjaersgaard, leader of the far-right, anti-euro Danish Peoples Party.

Danes have said a clear no to developing a United States of Europe, she told reporters.

Prime Minister Poul Nyrup Rasmussen emerged from party officesat Parliament to concede defeat. Close to tears, he said: I shallnot try to hide the fact that I am disappointed with the result.

It was a defeat for me, it was a defeat for us, he said,adding that Denmark now risked being sidelined within Europe.

It will be more difficult for Denmark to work within theEuropean Union, but we will naturally still fight for Denmarksinterests.