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Decision on Danish euro referendum in August: PM

11 June 2008, 22:51 CET

(COPENHAGEN) - Denmark's government will decide in August on the date of one or several referendums on dropping EU exemptions allowing it to remain outside the eurozone among other things, the prime minister said Wednesday.

"The government will spend the summer studying a report by the Danish Institute of International Studies and will decide at the beginning of August when and how a referendum could best be organised," Anders Fogh Rasmussen said in an address to parliament at its last session before the summer break.

The report, which is set to be published at the end of June, studies the consequences of four exemptions granted to European Union member Denmark in December 1992 allowing it to remain outside the eurozone, the EU joint defence policy, judicial cooperation and European citizenship.

The opt-outs, accorded Denmark after it initially rejected the EU's Maastricht Treaty in a June 1992 referendum, enabled the government to organise another plebiscite in May the next year, after which the treaty was adopted.

"These exemptions are incompatible with Danish interests," the head of Denmark's ruling centre-right coalition said.

"They distance us from the EU's efforts to create and maintain peace and security in hot spots around the world and prevent us from participating," he added.

The opt-outs on European defence policy and judicial cooperation also put Denmark "on the sidelines of joint police cooperation, including the international fight against terrorism and cross-border organised crimes such as human trafficking and child pornography," Rasmussen said.

He made no reference to the euro in his address, but said repeatedly that the "time for the exemptions has come to an end."

The government will also decide if all four opt-outs should be considered in a single vote.

Rasmussen's comments came two days after a new Gallup poll showed shrinking support in the Scandinavian country for swapping the krone with the euro, with 47 percent of Danes in favour and 45 percent opposed.

A similar poll conducted a month ago had indicated that 52 percent of Danes wanted to join the eurozone.

Rasmussen has meanwhile voiced strong support for scrapping the opt-outs, insisting that the time had come to drop the exemptions, which "hinder Denmark from fully participating in the European cooperation."

Observers in the Scandinavian country have also pointed out that the exemptions could possibly block Rasmussen from taking over the EU's top job at the end of this year as has been rumoured in European circles.

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