Danish Central Bank Governor: It is worth considering switching to the euro for a greater role in the EU

Denmark should consider switching to the euro if it wants to play a bigger role in the European Union, the country's central bank governor, Christian Kettel, said in an interview with Bloomberg.

He said that in a macroeconomic sense, Denmark is already part of the eurozone because of the currency peg, as the Danish krone exchange rate is fixed and kept within 2.25% against the euro. This means that Danish monetary policy actually depends on the decisions of the European Central Bank, but Denmark has no influence on these decisions.

"Can I ask what the difference is? I think the reasons should be sought in the question: would you like to see Denmark more integrated into European cooperation? We are involved in EU cooperation in general, but the ECB or the euro is a pretty important part of that," he said.

"The decision to adopt a single currency is ultimately a political one," Thomsen added, noting that a "very large majority of the population" supports the current fixed exchange rate system.

He also said that in the face of global instability, it would be safer for small countries to stick together with others.

Denmark decided in 1992 that it would abstain from joining the euro. The 2000 referendum confirmed this decision. Among the six EU countries that do not use the euro, the Danes are the most skeptical about joining, so governments try to avoid the topic.

• Starting in 2026, the eurozone will expand to 21 countries Bulgaria will abandon the lion and switch to the euro. Romania may be next after Bulgaria in a few years.
• The NBU assumes that Ukraine will be in the EU for a long time after joining will keep its own national currency.