Re: Danes say no to euro

["Henry C.K. Liu" <hliu@xxxxxxxxxxxxxx>]

Sven R Larson wrote:

> With 53.1% against and 46.9% for, the Danish people yesterday said no to
> joining the European currency union. The result was well in accord with
> most opinion polls. The repercussions of the result are not going to be
> extreme, but will nevertheless be noticeable. Sweden will not join, and
> the anti-euro movement in Britain will be strengthened. The euro will be
> weakened (although not very much) and the Danish interest rates will,
> after a brief period of uncertainty, fall a bit.

Denmark will have to live with the economic downside of the ``no'' vote,
Duisenberg said. Some Danish companies have complained that staying out of
the euro will handicap them, because it will lead to higher borrowing costs.

                    Higher Borrowing Costs

Danes got a foretaste of that today when the Danish central bank raised its
main lending rate to a five-year high of 5.6 percent, to defend the krone.
The krone was little changed following the move.

The additional yield on Danish 10-year government bonds compared with
equivalent German bonds rose by 1 basis point today, extending the gap to 40
points.

>From Bloomerg.

Henry C.K. Liu