Denmark must slash deficit to match eurozone criteria: minister
(COPENHAGEN) - Denmark needs to slash its public deficit by 24 billion kroner (3.2 billion euros, 4.3 billion dollars) by 2013 to meet to the EU's monetary policy criteria, Finance Minister Claus Hjort Fredriksen said Wednesday.
As a result of the global economic crisis, Denmark's financial situation "has changed dramatically in two years."
"We have gone from a surplus of 3.5 percent of GDP (gross domestic product) in 2008 to an expected deficit of 5.5 percent of GDP in 2010," Frederiksen told reporters when presenting the Danish government's new programme.
Denmark, while part of the European Union but not the eurozone, is bound to eurozone criteria by an agreement that authorises the krone to fluctuate no more than 2.25 percent from the euro.
But Denmark's current public deficit is almost double the 3.0 percent authorised by eurozone criteria.
The country's public finances had a surplus of 60 billion kroner in 2008 but are expected to show a deficit of 95 billion kroner in 2010, the minister said.
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