Danish Government Positions on Various European Union Politico-Economic Policies

A SUMMARY OF THE POSITIONS ESPOUSED BY THE CURRENT DANISH
GOVERNMENT REGARDING A SELECTION OF KEY POLITICO-ECONOMIC
POLICIES INSTITUTED BY THE EUROPEAN UNION
Policy Dossier Prepared By:
Nicholas Gober
Submitted: 23 November 2015
INTA 2221 | Politics of the European Union
Georgia Institute of Technology, Atlanta, GA 30332, USA

2
CONTENTS
Introduction....................................................................................................................................3
EU Politico-Economic Policy Standpoints
EU Cohesion Policy........................................................................................................................3
The EU Single Market....................................................................................................................4
EU Economic and Monetary Union Policy...................................................................................5
EU Freedom, Security, and Justice Policy....................................................................................7
EU Environmental Policy..............................................................................................................8
EU Trade Policy..............................................................................................................................9
EU Common Foreign and Security Policy..................................................................................10
EU Agriculture Policy..................................................................................................................12

3
INTRODUCTION
The Government of the Kingdom of Denmark aims to establish cohesion throughout the
entirety of Danish society, believing that a unified society built upon universal equality, mutual
trust amongst its members, and respect for the individual will not only thrive but vastly prosper.
Despite having made substantial strides toward achieving this goal, sufficient cohesion has yet to
occur in many societal sectors. In particular, adequately increasing cohesion economically,
geographically, and socially is our overarching goal1
.
The Danish Government’s plan toward accomplishing said goal, in regards to certain
European Union-instituted politico-economic policies that are currently in effect, is summarized
throughout this report. Currently, our most important priorities2
are the following:
 More private jobs through a sound and responsible economic policy underpinning growth
and prosperity throughout the entirety of the Kingdom.
 A Denmark where it pays more to work, and where fewer are on public support.
 A strong, focused foreign policy that safeguards and promotes Danish interests/influence.
EU COHESION POLICY
It is the belief of the Danish Government that neither a high standard of living nor an
extensive social security system is sustainable (long-term) if debt is accumulated; as such, reducing
the national and foreign debts, as well as maintaining a balanced budget, is a central objective of
the Government. Hence, the economic policy of the Danish Government is aimed at generating a
1
L. L. Rasmussen, “Prime Minister Lars Løkke Rasmussen’s Opening Address to the Folketing” (speech, Prime Minister’s
Inaugural Address to the Danish Parliament at Christiansborg Palace, Copenhagen, Denmark, October 6, 2015).
http://www.stm.dk/_p_14252.html.
2
The Danish Government, Together for the Future: Government Platform, June 2015, (Copenhagen: The Danish Government,
2015), 1, http://www.stm.dk/multimedia/TOGETHER_FOR_THE_FUTURE.pdf.

4
stable, sustainable growth of employment. More specifically, the Government holds that economic
policies should build on four pillars: low inflation rate; low interest rates; fixed currency rate; and
sound, stable public finance3
.
Denmark needs more jobs in the private sector—this is a precondition for both our common
welfare and for the immediate welfare of the individual family. Companies must improve
conditions for investment and job creation, more people must move from public support into jobs,
and more vacant jobs must be filled by Danes, with all of Denmark benefiting from the economic
progress. Consequently, in an effort to ensure that it pays more to work than to receive public
support, the Government will implement a Job Reform over two separate phases4
. Altogether, the
Job Reform will increase the gain from working, thus allowing more individuals to become
employed through an increase in the supply of labor—this will imply less expenditure on transfer
payments, more tax receipts, and a better quality of life for many people.
THE EU SINGLE MARKET
The Danish Government emphasizes that the hallmark of a free society is free competition,
believing that it is the only effective means of creating an open and transparent single market
throughout the entirety of the EU (in which supply and demand play a part in determining prices)
where every individual entity is free to enter into commitments on their own responsibility5
.
3
“Domestic Policy,” Venstre National Organization, accessed November 22, 2015,
http://www.venstre.dk/service/english/domestic-policy.
4
Danish Government, Government Platform, 6.
Phase I began on October 2, 2015, when a cash benefit ceiling was introduced4
which effectively placed a cap on the amount of
public benefits recipients of cash benefits are eligible to receive; the ceiling comprises the majority of public benefits that a cash
benefit recipient may be entitled to, and the generated revenue will contribute to the financing of Phase II, which will begin in
early-mid 2016 when the Government initiates trans-party negotiations in regards to lowering taxes on earned income. The purpose
of Phase II is two-fold: 1) to reduce taxes for the lowest income brackets to ensure that the gain from low-paid work is increased;
and 2) to reduce taxes on the last earned krone by 5% to ensure that more people will work more frequently and to make it easier
for Danish companies to recruit and retain well-paid employees.
5
“Basic Political Principles,” Venstre National Organization, accessed November 22, 2015,
http://www.venstre.dk/service/english/basic-political-principles.

5
Established in 1992, The EU Single Market has led to the creation of millions of jobs that
can be directly attributed to its inception; nonetheless, many barriers preventing the formation of
a truly authentic, all-encompassing Single Market (i.e., free movement of goods, capital, services,
and people amongst all 28 member states being a 100% seamless process within the various
sectors), still exist today, particularly in regards to growth. The EU’s 28 “mini-markets” could,
theoretically, be crafted into one enormous common market if all gaps in free movement were
eliminated, particularly within the digital sector6
.
Currently, the Digital Single Market is not well-established across the EU for two main
reasons: 1) Internet security is not equivalent throughout the EU because consumer rights are not
entirely uniform amongst all member states; and 2) as of 2013, only ~50% of all EU citizens had
access to Internet service at speeds of (at least) 30 MB, while a mere 2.5% had access to speeds of
(at least) 100 MB. The Government believes the EU should work toward, in conjunction with
national parliaments, ensuring every single EU citizen has access to 30 MB Internet service, with
at least 50% having access to 100 MB speeds, by the year 20207
.
The EU Services Directive, the objective of which, according to the Commission itself, is
to “realize the full potential of services markets in Europe by removing legal and administrative
barriers to trade8
,” has, to date, failed to form a Single Market within the service sector.
Accordingly, the Government will work toward implementing the principles/obligations of the
6
Venstre National Organization, Venstre’s EU Electoral Manifesto: A Europe of Solutions, 2014-2019, (Copenhagen: Europa-
Nævnet), 8, accessed November 22, 2015,
http://www.venstre.dk/_Resources/Persistent/85eab293c7f92e0ff45112f7d56eedcecc227e56/ENG-Venstres-EU-program-2014-
2019.pdf.
7
Venstre, EU Electoral Manifesto, 8.
8
“Services Directive,” European Commission, last updated November 20, 2015, http://ec.europa.eu/growth/single-
market/services/services-directive/index_en.htm.

6
Services Directive by, among others actions, demanding sanctions against member states not
actively adhering to the established regulations.
EU ECONOMIC AND MONETARY UNION POLICY
The Government aims to restore confidence in the EU economy, as well as in EU banks—
this requires acknowledging that the Economic and Monetary Union should be expanded. The
Government supports supplementing the common monetary policy with a banking union, as well
as tightening of the rules governing both budget discipline and the implementation of reforms. The
Government believes that stabilization of the euro is crucial for the health of the EU economy9
.
A lack of stability in the European banking sector has continued to extend the duration of
the EU debt crisis. More stringent, uniform regulations are an important step in ensuring access to
capital for businesses and, thus, in restoring trust in EU banks. Still, however, EU citizens must
have assurance that their savings will be able to endure a potential bank collapse. The Danish
Government believes that if we are to improve bank supervision and reduce the risk of expensive
bank bailouts, a banking union is required. The Government regards participation in the banking
union as a mutual insurance arrangement, in which the ties between member states and banks can
be severed, thus eliminating the risk of sovereign default in the event that the bank fails10
.
Many countries today are unable to independently save their respective banking sector
because the costs to do so would be greater than the overall size of their national economy; this is
also true of Denmark, where the banking sector is four times the size of the Danish economy. The
Government believes that it is vital that construction of the banking union ensures that, in principle,
9
10

7
it is the banking sector, neither the state nor the taxpayers, that finances this insurance. Just as there
must be a guarantee that the Danish mortgage finance system will be allowed to continue in its
present form, Danish participation in the banking union must correspond with the Danish opt-out
of the euro11
.
EU FREEDOM, SECURITY, AND JUSTICE POLICY
Indeed, Denmark is a safe and secure country, and we must ensure that it remains so; aptly,
the Government calls for an increase in visibility of the Danish police force, desiring for all Danes
to feel safe and secure to the maximum possible degree. In an effort to ensure that the police and
other relevant authorities have sufficient access to the resources they require, the Government will
allot funds to: 1) increase the intake of police trainees; 2) establish a police officer training
program in Western Denmark; and 3) ensure greater task transfer in the police so that non-policing
tasks can be performed by other staff groups to a greater extent12
.
Subsequently, the Government will take vigorous, resolute action in places where safety
and security is threatened, effectively adopting a new, harsher approach to crime. In particular,
this approach applies to (but not limited to) crime committed by gangs and bikers, which is
gradually becoming more and more brutal and ruthless—thus, monitoring of bikers and gang
members will be strengthened, and the opportunity for parole will be reduced13
.
Similarly, the Government will also take action against non-Danish citizens who commit
crime in Danish-owned territory. Exploiting the trust of Danish society, these foreign criminals
must be deported to a country of which they possess citizenship to serve their prison sentences;
11
12
Danish Government, Government Platform, 18-19.
13

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suitably, the Government will tighten the deportation rules and enhance efforts to ensure
deportation of foreign criminals14
.
EU ENVIRONMENTAL POLICY
The Danish Government’s environmental policy is based on green realism, a concept
which suggests there must be coherence between the environmental policy goals and the resources
available to meet said goals—this green transition must be implemented in a way that is prudent
relative to developments both in Denmark and the world around us15
.
The Government wishes for future generations to inherit a healthy environment that is in
good condition; yet, a precondition is that we are able to simultaneously create growth, jobs, and
prosperity—that is, the environmental policy goals must be achieved in the most socio-
economically effective way, in which the most environmental value relative to the amount of money
spent is secured. The Government’s ultimate goal is for Denmark to be completely independent of
fossil fuels by the year 2050 (i.e., 100% of Danish energy consumed in 2050 will have been
produced by Denmark itself in an entirely renewable fashion)16
.
The Government believes that the individual citizen is responsible for taking care of the
environment by reducing their use of products with large environmental impacts and their overall
amount of waste generated. Pollution does not respect borders, which is why it should be
combatted through strong international cooperation. Environmental taxes should have a positive
impact on the environment; the principle, therefore, should be that the consumer/producer should
be able to reduce, or even completely avoid, environmental taxes by changing approaches to
14
15
16

9
consumption/manufacturing—environmental taxes should not increase the overall tax burden but
constitute an economic incentive for environmentally-friendly behavior17
.
EU TRADE POLICY
The international trade policy of the Danish Government fundamentally aims at allowing
more free-trade on a global basis. The Danish economy, the global economy, and the economies
of developing countries will all benefit from an increase in international trade. Denmark’s
international trade policy is conducted in close co-operation with the other EU member states18
.
Although international trade policy may be conducted both bilaterally and regionally,
Denmark and the EU remain fundamentally and clearly committed to multilateral negotiations;
thus, the World Trade Organization (WTO) is the primary focus of both Danish and EU trade
policies. The WTO system creates an international legal system, providing the necessary
guarantees for all actors in the global economy; it ensures the involvement of, and consideration
for, developing countries. It is important for Denmark that the WTO agreements can be enforced
through WTO’s dispute settlement system. The alternative to WTO’s regulation of international
economy is that “might is right.” Likewise, it is important for Denmark to continuously search for
flexibility in agriculture and other important areas of negotiation19
.
Denmark is among the most active liberal trade and development-friendly member states
of the EU. Accordingly, Denmark works within the EU to promote common positions along these
lines to help integrate developing countries into the multilateral trading system. Simultaneously,
17
“Domestic Policy,” Venstre.
18
“International trade policy,” Ministry of Foreign Affairs of Denmark, accessed November 22, 2015, http://um.dk/en/foreign-
policy/international-trade-policy/.
19
“International trade policy,” Ministry of Foreign Affairs.

10
Denmark fully respects the fact that trade policy of the EU almost exclusively lies within the
purview of community competence20
.
A number of EU bilateral or regional trade agreements are presently finalized or under
negotiation. These bilateral agreements constitute an important complement to the results obtained
in the multilateral WTO negotiations; although important, EU's bilateral agreements generally do
not have a significant impact on Danish economy, as almost 70% of the Danish foreign trade is
with other EU countries or EU-acceding countries. These other markets, the most important of
which are of the USA, Canada, Japan, and China, are not presently covered by bilateral nor
regional EU agreements; therefore, the main focus for Denmark and the EU within the
international trade negotiations remains establishing multilateral agreements21
.
EU COMMON FOREIGN AND SECURITY POLICY
Trans-border crime. The Government strongly believes that fighting crime effectively,
both domestically and abroad, requires close European police cooperation. The Government seeks
to ensure that Denmark can continue its participation in the EU law enforcement agency Europol22
;
accordingly, an upcoming referendum on converting the current Justice and Home Affairs (JHA)
opt-out into an “opt-in” arrangement23
is currently scheduled to be held on December 3 of this
year, a major shift which would enable Denmark to decide for itself which parts of JHA policy it
wishes to participate in and/or forego24
.
20
21
22
23
Also referred to as a “partial opt-out” arrangement.
24
“Denmark to vote on Justice and Home Affairs opt-in model on 3 December,” Ministry of Foreign Affairs of Denmark, August
21, 2015, http://um.dk/en/news/newsdisplaypage/?newsID=DCB9FAA3-37A6-4673-989F-0C771B7CFAFE.

11
Furthermore, to improve Europol’s capability of fighting against trans-border crimes (e.g.,
child pornography, international gangs, etc.), the Government wishes for funds to be set aside for
joint international investigations. The Government believes that new types of crime could be dealt
with more effectively by setting up an information center of excellence under Europol;
additionally, the European Cyber Crime Centre should be supplemented with one designed to
combat fraud in the food industry25
.
Terrorism. The perpetual threat of terrorism became concrete with the tragic events that
occurred in Copenhagen this past February. In an effort to avert any potential recurrences, the
Government will strengthen protection against terrorism and will both maintain and expand its
international cooperation against terrorism. Denmark must continue to participate in the
international coalition against ISIL, contributing militarily to efforts undertaken to eliminate its
authority throughout Syria, Iraq, and elsewhere across the globe26
.
Denmark will remain a free and independent nation solely with Danish participation in a
legally-binding international community, in which the Danes cooperate with other nations to create
freedom, peace, and prospects of better living conditions. As it is necessary to have a military
defense system to ensure freedom and peace, Denmark shall remain a full member of NATO
(North Atlantic Treaty Organization) and shall contribute to the common efforts of having a
reliable defense27
.
Immigration. To prevent the disastrous effects that accompany extreme border-congestion,
the EU will have to modernize its external border control in which relatively easy passage for
business people/students is guaranteed while also ensuring far more difficult entry-regulations for
25
26
27

12
criminals/illegal immigrants. The Danish Government believes28
: 1) member states should be able
to request that the Commission perform a survey of external border controls29
; 2) the EU’s joint
border agency, Frontex, should have greater powers to instigate closer cooperation/assistance to
volatile member states/third-party countries; and 3) the EU must create a common system with the
same asylum rules and criteria to be adhered to by all member states30
.
EU AGRICULTURE POLICY
The rising global demand for food provides new growth opportunities for European
agriculture sectors, in turn necessitating investments in research, high standards of food quality,
and sustainable development. The EU should focus research on applications of technology in the
food/agriculture sector, and it should attempt to establish free trade agreements with various non-
EU countries so that new markets within the industry are opened31
.
The Danish Government supports a subsidy-free farming policy; however, a settlement of
EU farm subsidies must not lead to the renationalization of agricultural policy, where individual
countries can establish national aid schemes and thus distort competition. The Government is
convinced that Danish Agriculture will be able to perform better in the global market competition
without constricting rules imposed by EU agricultural subsidies32
.
When the newly-adopted CAP (Common Agriculture Policy) reform is fully implemented,
the Government wishes for “burden checks” so that potential unnecessary burdens that may have
28
Venstre, EU Electoral Manifesto, 19-20.
29
They could then decide each year if an individual member state should be suspended from the Schengen Area until it had
reinstated credible border controls.
30
This should prevent the phenomenon of “asylum shopping” from occurring (i.e., asylum seekers abusing the differences in the
various national regulations, seeking asylum where the rules suit them best).
31
32

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arisen as a result of said reform may be reduced. The Danish Government believes it is important
to implement the same in all member states to avoid any difficulties with propelling agriculture in
Denmark33
.
33

Danish Government Positions on Various European Union Politico-Economic Policies

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