KEY FACTS

Denmark

Official name: Kongeriget Danmark (The Kingdom of Denmark) Head of State: Queen Margrethe II Head of government: Prime Minister Anders Fogh Rasmussen (V) (since Nov 2001) Ruling party: Right-wing coalition government comprising the Venstre (V) (Liberal Party) and the Konservative Folkeparti (KF) (Conservative People’s Party) Area: 43,080 square km Population: 5.41 million (2004) Capital: Copenhagen Official language: Danish Currency: Danish krone (Kr) = 100 ore Exchange rate: Kr6.18 per US$ (Jul 2004) (pegged through the original European Exchange Rate Mechanism; trades around Kr7.43 per euro) GDP per capita: US$39,453 (2003) GDP real growth: 0.50% (2003) Labour force: 2.86 million (2003) Unemployment: 5.50% (2003) Inflation: 2.00% (2003) Oil production: 368,000 bpd (2003) Balance of trade: US$8.40 billion (2003) Foreign debt: US$21.70 billion (2003)

S

ince coming to power in 2001, Denmark’s centre-right coalition government, made up of the Venstre (Liberal – although the word actually means ‘Left’) Party and its partners the Konservative Folkpartei (KF) (Conservative People’s Party), led by Prime Minister Anders Fogh Rasmussen, under the slogan ‘Growth, Welfare, Renewal’, has focussed on freezing taxes, combating immigration and crime and increasing private participation in healthcare and education. The coalition government replaced a Social Democratic led coalition that had been in power since 1994. Coalition government is something of a tradition in Denmark – the government of the day will, to the extent that more important legislative measures normally passed following consultation with smaller opposition parties. Since assuming power, the Rasmussen led government has appeared to disregard this practice, confining its consultations to its KF partners.

Growth, Welfare, Renewal Rasmussen’s alliance with the KF has not been without problems, due for the most 412

part to the KF’s hard line on immigration. In June 2002 the Folketing (parliament) passed three amendments to the Aliens Act relating to the fight against international terrorism and the treatment and integration of foreigners. Since the new legislation was passed, Denmark’s newly restrictive policy on asylum and immigrants has had a significant effect on immigration numbers. These dropped from 12,512 in 2001 to 3,762 in the first threequarters of 2003. Central to the new legislation was the clarification of the definition of a refugee, the extension of the period of residency required for permanent resident status from three years to seven and greater restrictions on family reunification. The financial consequences of the new legislation were also significant; in 2003 government expenditure related to asylum dropped by an estimated US$300 million. Following the enlargement of the European Union in May 2004, Denmark has adopted a middle-way policy, allowing workers from the new member states in Central Europe to work in designated areas, but limiting their access to social security benefits.

Denmark Although a majority of the electorate support the immigration restrictions, they have attracted international criticism from the United Nations High Commission for Refugees and from traditionally liberal neighbouring countries such as Sweden. The KF’s influence was also felt in March 2004 with the introduction of legislation controlling the use of cannabis in Denmark. In contrast both with Denmark’s traditionally tolerant attitude and with policy trends in other European states, where cannabis has been downgraded, tough penalties were introduced not only for cannabis dealers, but also for the drug’s users.

Economy stalls In 2003 Denmark experienced its lowest gross domestic product (GDP) growth rate – 0.5 per cent – for 10 years. Growth in 2002 had been 1.6 per cent and official forecasts predict a recovery to 2.2 per cent on 2004. In mid-2003, though, Denmark was technically in recession, recovering towards the end of the year thanks to increases in exports and private consumption. Between 1994 and 2001 Denmark had managed to buck the European trend, growing at a faster rate than the EU average. GDP per capita in 2003 was US$39,453, placing Denmark among the world’s 10 richest countries. Total GDP in 2003 was US$212.7 billion forecast to rise to US$234.2 billion in 2004. Denmark has a balanced economy with a well-developed, export-based manufacturing sector and an important agricultural sector. It is one of the wealthier EU countries on a per capita basis, benefiting from the development of offshore oil and gas reserves since the 1970s. The economy is heavily oriented towards export markets. It has long been a characteristic of Danish industry that there is almost no state-ownership nor government subsidies for industry. Denmark also has a proportionately larger number of small firms than most EU countries. Danish industry has proved adept at being flexible and innovative. The government has maintained a stable currency and successive foreign debt reductions. A large and comprehensive welfare state has helped keep Denmark’s tax burden at high levels, which, at the equivalent of 49 per cent of GDP, is the second highest in the OECD after Sweden. The unemployment rate rose from 5.5 per cent in 2003 to 6.5 per cent in early 2004, but it is expected to fall again later in the year as a result of the economic upturn. Between 2004 and 2006, phased tax

cuts are to be introduced, to be offset by savings in public administration. Due to the government’s focus on maintaining a stable krone, fiscal policy is increasingly being used to promote economic growth and to meet the fiscal burden of an ageing population. Consequently, the government has followed a policy of reducing taxes on employment, while social security benefits have been revised and expenditure limited. Public sector spending, while declining, remains high at approximately 55 per cent of GDP. The main aim of the 2003/04 budget is to maintain the budget surplus at around 2 per cent of GDP – in 2003 it was 1.3 per cent. The government also introduced a tax freeze, although Denmark still has some of the highest taxes in the world. A number of fiscal policy measures implemented by the previous government and aimed at controlling the growth of public expenditure and restructuring the welfare system have succeeded in generating sizeable general government surpluses, averaging 1.8 per cent of GDP since 1997. The government is in the process of reforming the public sector, introducing a market element into the Danish/Scandinavian welfare model. It remains politically difficult to introduce any major changes to the role the government plays in providing all basic services (health, education, welfare and social security). Most privatisations took place in the 1990s, including the sale of the national telecommunications company Tele Danmark (TD).

The central bank, the Danmarks Nationalbank, is responsible for monetary policy. It aims to maintain the krone’s fixed exchange rate with the euro in the Exchange Rate Mechanism (ERM) II within a 2.25 per cent band. This is largely achieved by controlling lending and discount rates. Inflation remained low in 2003 at 2.0 per cent and is forecast to drop to 1.4 per cent in 2004.

External relations Denmark’s membership of the EU remains a contentious issue and high on the political agenda. The government has seen fit to approach all EU issues with caution. Rasmussen has said that Denmark will hold another referendum on adopting the euro and on the proposed EU constitution, in 2004 or 2005. Fearing that the country is losing its influence within the EU, Rasmussen has also made it clear that he wants to end Denmark’s four opt-outs from the 1992 Treaty of the European Union (the Maastricht Treaty), which allows the country not to become involved in EU monetary, defence and judicial affairs or any moves to introduce EU common citizenship. Such a move, however, could cost the coalition government the support of the KF, making it difficult for it to pass legislation in parliament. Denmark wants to strengthen the EU’s relations with the US, especially following the transatlantic rift that developed during the 2003 Iraq War. Denmark demonstrated its support of the US in 2003 when it joined the US-led coalition invasion of Iraq,

KEY INDICATORS Population

Denmark

Unit

1999

2000

2001

2002

2003

m

5.32

5.33

5.36

5.38

5.39

Gross domestic product (GDP) US$bn

173.90

162.70

161.50

174.80

212.76

GDP per capita

US$

32,695

30,530

30,240

32,491

39,453

GDP real growth

%

1.6

3.0

1.0

1.6

0.5

Inflation

%

2.5

2.9

2.4

2.4

2.0

Unemployment Oil output Natural gas output

%

5.6

5.3

5.2

5.0

5.5

'000 bpd

300.0

359.0

342.0

371.0

368.0

bn cu m

7.8

8.1

8.4

8.4

7.9

Exports (fob) (goods)

US$m

49,550.0

50,703.0

50,943.0

56,800.0

56,300.0

Imports (fob) (goods)

US$m

43,010.0

43,946.0

43,983.0

49,230.0

47,900.0

Balance of trade

US$m

6,537.0

6,758.0

6,960.0

8,000.0

8,400.0

Current account

US$m

2,176.0

2,507.0

4,142.0

4,920.0

5,900.0

Total reserves minus gold

US$m

22,287.0

15,108.0

17,110.0

29,986.0

–

Foreign exchange

US$m

21,145.0

14,469.0

16,117.0

25,901.0

–

per US$

6.98

8.08

8.32

7.75

6.52

Exchange rate

413

Nations of the World: A Political, Economic and Business Handbook deploying a submarine and a frigate in the Arabian Gulf. Following the end of the war in May 2003, a Danish diplomat, Ole Woehler Olsen, was appointed as the regional co-ordinator in Basra in southern Iraq. In mid-2003, Denmark also provided ground troops to a multi-national stabilisation force in Iraq. In addition, the government provided US$54 million for humanitarian aid and reconstruction.

Greenland and the Faroes Greenland and the Faroe Islands, both dependencies with limited home rule, are important concerns for the government. Greenland, which has been earmarked to play an important part in the US’s National Missile Defence (NMD) project, requires particularly sensitive handling. Despite local opposition, (a group of Inuits asked the Supreme Court to order the closure of the Thule Air Base in November 2003), the government is likely to allow the US to upgrade and extend existing facilities for the NMD project, at the base in northern Greenland. The Faroe Islands postponed an attempt to hold a referendum for full independence in 2001 after then Prime Minister Nyrup Rasmussen declared he would halt Danish aid after four years if they went their own way. This financial lifeline is vital for the Faroese economy but although Nyrup Rasmussen’s determined approach drew condemnation from the islanders, he was backed by a majority of the Danish parliament. Efforts by the Faroese to re-open negotiations with Denmark have continued, but their chances of gaining independence are small.

Outlook A number of issues facing the government in the coming years could create political difficulties for Anders Fogh Rasmussen’s administration. Not least of these could be the government’s plan to hold another referendum on the euro. With September 2003 polls suggesting overwhelming support for the euro, a referendum is more likely to divide the political parties than the population. There has been a marked shift in Denmark’s policy towards the EU. However, the country could find it difficult in the long-term to help shape the EU’s future by maintaining the opt-outs on key EU issues.

Risk assessment Politics Economy Regional stability

414

Good Good Good

COUNTRY PROFILE Historical profile Denmark is an ancient kingdom situated on an archipelago, which has historically served as a bridge between continental Europe and the Scandinavian peninsula. During the Napoleonic era, the Danes sided with the French and, as a result of their defeat, lost their dominance in Scandinavia. 1397 The Union of Kalmar united Denmark, Sweden and Norway under a single monarch. 1523 Denmark recognised Swedish independence. 1729 Greenland became a Danish province. 1814 Denmark ceded Norway to Sweden. 1849 Denmark became a constitutional monarchy with a bicameral parliament. 1903 Iceland was granted home rule from Denmark. 1918 Iceland became a sovereign state in union with Denmark. 1914–18 Denmark was neutral during the First World War. 1918 Denmark’s transition to parliamentary government with universal suffrage was fully established after the First World War and has been suspended only during the Nazi occupation of the Second World War. 1939 Denmark signed a non-aggression pact with Nazi Germany. 1940 Germany invaded Denmark. 1945 The German occupation ended. Denmark recognised the independence of Iceland. 1948 The Faroe Islands were granted self-government within the Kingdom. 1949 Denmark was one of the founder members of NATO. 1953 A revision of the constitution allowed for female succession to the throne, abolition of the upper house of parliament and the introduction of proportional representation. Greenland became an integral part of Denmark. 1959 Denmark joined the European Free Trade Association (EFTA). 1972 Queen Margrethe ascended the throne. 1973 Denmark joined the European Economic Community (EEC). 1979 Greenland was granted home rule; Denmark retained control over Greenland’s foreign affairs and defence. 1985 Parliament passed legislation to ban the construction of nuclear power plants. 1992 In a referendum, voters rejected the Maastricht Treaty on further European integration. 1993 Poul Schlüter, prime minister since 1982, resigned after a judicial enquiry criticised him for misleading parliament in 1989 over the Tamil visa scandal. A

four-party coalition government was formed by Poul Nyrup Rasmussen. Denmark voted in favour of a revised Maastricht treaty. 1994 Rasmussen was returned to power after a general election. 1998 Danish voters endorsed the EU’s Amsterdam treaty, which prepared the way for former eastern bloc countries to join the EU. 2000 In a referendum, Denmark voted against joining Europe’s single currency. 2001 The Venstre (Liberal Party), led by Anders Fogh Rasmussen, beat the ruling Socialdemokratiet (Social Democrats) led by Poul Nyrup Rasmussen, in the elections. Fogh Rasmussen was only able to form a minority administration, in coalition with the Konservative Folkeparti (KF) (Conservative People’s Party), relying on support from the right-wing Dansk Folkeparti (DF) (Danish People’s Party) in order to command a majority in parliament. 2002 Proposed government measures aimed at reducing immigration sparked controversy. The EU-Russia summit was moved from Copenhagen to Brussels because of a diplomatic row between Denmark and Russia over the Copenhagen conference of Chechen exiles, when President Putin threatened to boycott the summit if it was held in Copenhagen. 2003 Two commercial radio networks were launched. 2004 In May, Crown Prince Frederik married Australian-born Mary Donaldson – the first Australian to join a European royal family. Political structure Constitution When the constitution was revised in 1953 the Act of Succession was amended to include female heirs. The monarch’s duties include appointing and dismissing the prime minister and other ministers, ratifying legislation approved by parliament, appointing judges to the bench and granting pardons and amnesties. The Faroe Islands were administered as a Danish county until they achieved home rule in 1948. Greenland constitutes a special status community within Denmark. Sovereignty rests with authorities in Copenhagen. Greenland gained home rule in May 1979 after a five-year study period and a referendum on the island. Form of state Parliamentary democratic monarchy The executive While the monarch is de jure the holder of executive power, in reality this function is performed by the prime minister and his cabinet, who are responsible to the parliament (Folketing).

Denmark National legislature Since 1953, the Folketing has been a unicameral parliament of 179 members, with two members elected in Greenland and two in the Faroe Islands. Elections, which must be held every four years, are by proportional representation. Voting is not compulsory, and is open to all men and women over 18 years, including prison inmates. Legal system Denmark’s highest court is the Supreme Court in Copenhagen, made up of 15 judges. It hears appeals from two superior courts in Copenhagen and Viborg. These courts deal with appeals from the 84 tribunals, or lowest courts of justice, around the country. They can also deal initially with cases of greater consequence. Last elections 13 June 2004 (European Parliament); 20 November 2001 (parliamentary) Results: European Parliament: SD won 32.5 per cent of the vote (five seats out of 14), Venstre 19.4 per cent (three), KF 11.2 per cent (one), June Movement 9 per cent (one), Socialistisk Folkeparti (SF) (Socialist People’s Party) 8.1 per cent (one), DF 6.8 per cent (one), Radikale Venstre (Radical Left-Social Liberal Party) 6.4 per cent (one) and People’s Movement against EU 5.2 per cent (one); turnout 47.8 per cent. Parliamentary: the Venstre (V) (Liberal Party) won 31.3 per cent of the vote, Socialdemokratiet i Danmark (SD) (Social Democracy in Denmark) 29.1 per cent, Dansk Folkeparti (DF) (Danish People’s Party) 12 per cent, Konservative Folkeparti (KF) (Conservative People’s Party) 9.1 per cent. Next elections 2005 (parliamentary) Political parties Ruling party Right-wing coalition government comprising the Venstre (V) (Liberal Party) and the Konservative Folkeparti (KF) (Conservative People’s Party) Main opposition party Socialdemokratiet i Danmark (SD) (Social Democracy in Denmark) Population 5.41 million (2004) Ethnic make-up Danes make up the majority of the population, along with some 9,000 Greenlanders and around 12,000 Faroese. The largest immigrant groups from outside the kingdom are Turkish, British and Norwegian. There is a small German minority in southern Jutland. Religions The majority of the population (90 per cent) belong to the Lutheran Church

although there are small groups of other Christian denominations. Education There are 10 years of compulsory schooling, although the average student attends school for 15 years. The participation rate at primary and secondary levels is close to 100 per cent of the relevant age groups. Forty-six per cent of the relevant age group attend education at a tertiary level. The cost of university or post-high school further education is financed by a system of student grants supplemented by bank loans carrying a state guarantee. Compulsory years: Seven to 16. Pupils per teacher: 10 in primary schools. Health Total expenditure on health, is 8–9 per cent of GDP, of which 82–83 per cent is government spending. Hospitalisation and treatment by general practitioners is free of charge, but there are part-charges for medicine prescribed by GPs. Treatment by dentists and opticians is subsidised but not free. Since 1988, several small private hospitals have opened, the fees for which can be covered by insurance schemes. Life expectancy: 76.9 years (World Bank) Fertility rate/Maternal mortality rate: 1.8 births per woman; maternal mortality 0.1 per 1,000 live births: (World Bank) Infant mortality rate: 4 per 1,000 live births (World Bank) Head of population per physician/ bed: 2.9 doctors and 5 hospital beds per 1,000 people. Welfare There is an extensive cradle-to-the-grave social security system in Denmark, including unemployment benefits, supplementary benefits and rent and heating grants. Social security and welfare spending as a share of GDP is approximately 5.8 per cent. The size of the welfare system has gradually been reduced since the 1990s and the Rasmussen government has indicated that it wants to reduce it further. Welfare cuts, including those to the short-term unemployed, are under examination as the government seeks new ways to lower its outgoings. Innovative schemes, such as a pilot scheme for volunteer workers, have so far failed to make any impact on unemployment statistics. Pensions Denmark was the first country to introduce old age pensions in 1895, funded by two general taxes. To sustain the current pensions, there is a three pillar approach to provision. Pillar one is a basic, mandatory, publically administered scheme,

maintained to provide for the poor in old age and may be supplemented by other allowances. Pillar two are mandatory, privately administered schemes and workplace pensions, which are devised to attract contributions as high as 16 per cent of wages. Pillar three are privately administered schemes with individual and voluntary contributions. Other schemes exist and fall within the rules of the three pillars. Main cities Copenhagen (capital, estimated population 1.1 million in 2004), Aarhus (220,700), Odense (144,600), Aalborg (120,600), Esbjerg (72,700). Languages spoken English and German are widely spoken in business and administration. Greenlandic is also spoken. Official language/s Danish Media The relationship between the Danish government and the press is very relaxed, and unhampered by government controls. A law enshrining the principle of openness in government, except for matters involving security, was passed in 1970. The newspaper press is not directly subsidised by the state, but it is exempt from the 25 per cent value added tax. Press There are nearly 400 newspapers in Denmark. Readership levels are high (85.6 per cent of all adults) and Sunday circulation is particularly strong. Market trends in recent years included the increasing popularity of broadsheets at the expense of evening tabloids and the fragmentation of the magazine readership, with family weeklies losing out to women’s titles. Most publications are privately owned and tend to have fairly strong political leanings. Dailies: There are almost 50 daily newspapers in Denmark, with Sunday readership particularly high. The leading newspapers are Morgenavisen Jyllands Posten, Ekstra Bladet and Berlingske Tidende. Weeklies: The most popular Sunday newspapers include Jyllands Posten, B.T., Politiken, Ekstra Bladet, Berlingske Tidende, Jydske Vestkysten, Aktuelt.dk, Aktuelt and Børsen. Other weeklies include Kig Ind and Se og Hør. Business: Børsen is the leading business daily. Other popular business magazines include Børsens Guldnr (twice a year), Børsens Nyhedsmagasin (fortnightly), Penge og Privaton Økonomi (monthly), Finansfokus and Nationaløkonomisk Tidsskrift.

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Nations of the World: A Political, Economic and Business Handbook Periodicals: Periodicals on general interest, life-style, consumer and commercial interest include Blender, Det Bedste fra Reader’s Digest, En Skør Skør Verden, Social Demokraten and the commercial quarterly Ase Nyt. Broadcasting Radio: The state radio service offers four radio channels: P1 (news and current affairs), P2 (classical music), P3 (for young people) and P4 (regional stations). DR Nyheder International broadcasts news in English. There are also a number of commercial radio stations throughout the country; two commercial networks, one national and one semi-national, were launched in 2003. Television: There are six major TV channels broadcasting substantially in Danish and some minor channels such as TV6 and ZTV. The country’s first national advertising-financed television station, TV2, introduced in 1988, is the market leader. The non-commercial public broadcaster, DR1, is second. Advertising The most widely used advertising media are the press and cinemas. Direct mail is also popular. TV2 is Denmark’s advertising-financed television station. There is limited advertising on radio, and poster sites are heavily regulated. Economy Denmark has a balanced economy with a well-developed, export-based manufacturing sector, and an important agricultural sector. It is one of the wealthier EU countries on a per capita basis, benefiting from the development of offshore oil and gas reserves since the 1970s. The economy is heavily oriented towards export markets. The government has maintained a stable currency and successive foreign debt reductions. A large and comprehensive welfare state has helped keep Denmark’s tax burden at high levels, which, at the equivalent of 49 per cent of GDP, is the second highest in the OECD after Sweden. Between 1994 and 2001, Denmark’s GDP grew much faster than the EU average and in 2002, despite the unfavourable global economic climate, Denmark achieved 1.6 per cent growth. Denmark experienced a brief recession in mid-2003 – the first in over 10 years, although GDP growth remained positive at 0.5 per cent. Economic revival is predicted for 2004 with growth of around 2 per cent. The unemployment rate rose from 5.5 per cent in 2003 to 6.5 per cent in early 2004, but it is expected to fall again later in the year as a result of the economic upturn. Between 2004 and 2006, phased tax cuts are to be introduced, to be offset by savings in public administration.

416

External trade Around 45 per cent of trade turnover is with other EU countries. Denmark has traditionally run up a healthy balance of trade surplus. Imports Principal imports are intermediate goods, fuels and lubricants and consumer goods. Main sources: Germany (22.9 per cent of 2002 total), Sweden (10.7 per cent), UK (8.7 per cent), The Netherlands (7.8 per cent), France (6.0 per cent). Exports Principal export commodities include meat and meat products, dairy produce, fish, chemicals, basic manufactures, machinery and ships. Main destinations: Germany (17.1 per cent of 2002 total), Sweden (11.6 per cent), UK (7.8 per cent), US (6.8 per cent), France (5.8 per cent). Agriculture Farming The agricultural sector typically contributes around 3 per cent of GDP and employs 4 per cent of the labour force. The sector is organised into local co-operatives which are united in national federations. Agriculture benefits from the Common Agricultural Policy (CAP), which imposes import duties on products entering the EU from other countries in order to equalise the price of imported commodities with those produced within the union. Efforts to reform the CAP could have a significant impact on future production. The government primarily acts as a regulator in the agricultural sector. It sets veterinary standards and lays down the rules for farm mergers and ownership. The government does not set production or export and import targets, and as a member of the EU, agriculture is subject to the EU agricultural production quota regime. Intensive farming is concentrated on livestock production, mainly pig-meat, beef, veal, poultry and dairy produce. Denmark has large world market shares in products such as pig-meat, dairy products, seeds, mink pelts and fish products. The estimated crop production for 2003 included: 8.9 million metric tonnes (mmt) cereals in total, 4.7mmt wheat, 3.8mmt barley, 1.5mmt potatoes, 205,000 metric tonnes (mt) oats, 175,000mt rye, 150,000mt pulses, 22,000mt tomatoes, 106,429mt oilcrops, 3.2mmt sugar beets, 33,000mt apples, 50,230mt fruit in total, 304,300mt vegetables in total. Livestock production included: 2.1mmt meat in total, 148,000mt beef, 1.8mmt pig-meat, 1,500mt lamb, 205,794mt poultry, 81,000mt eggs, 4.7mmt milk, 17,970mt cattle hides, 420mt sheepskins.

Fishing Typical seafood catches total around 1.7 million tonnes per annum (tpy), yielding over 140,000 tpy of fish oils. Denmark ranks fourth among the world’s leading seafood exporters. It continues to export significant quantities of processed seafood, fish oil and meal mainly processed from imported raw material. Decreased Danish cod catches are putting pressure on prices and import substitutes. Cod and other fish imports from other countries have considerably increased. Forestry Forest and other wooded land accounts for only one-eighth of the land area, with forest cover estimated at 455,000 hectares (ha). Plantations constitute about 75 per cent of the forest area, with the remainder classed as semi-natural. Less than 25 per cent of the forest is under public ownership, with the rest shared between individuals and private institutions. Demand for forest products is high and is mostly met by imports. Most of the softwood logs are processed locally while high quality hardwood logs are increasingly imported. The furniture industry depends on imported raw materials and exports most of its production. Total imports of forest products in 2002 amounted to US$1.6 billion, while exports amounted to US$349.3 million. Production in 2002 included: 1.4 million cubic metres (cum) roundwood, 244,000cum sawnwood, 153,000cum pulpwood, 455,000cum sawlogs and veneers, 353,000cum wood-based panels, 657,000cum woodfuel. Industry and manufacturing Denmark has a highly developed and diversified industrial sector, which is almost wholly under private ownership. The industrial sector contributes a quarter of GDP and employs a quarter of the labour force. As a country with a market economy and free external trade, government industrial policy plays a relatively minor role, especially as there is no significant state ownership in the industrial sector. Government support for industry is largely confined to export credit arrangements and funds for research and development. The engineering, food processing and wood-paper industries are the economy’s three biggest production areas. Industrial production increased by 1.4 per cent in 2003. Tourism Tourist arrivals decreased by 0.81 per cent in 2003, compared to 2002. Mining The mining sector contributes under 1 per cent to Denmark’s GDP. Denmark has no

Denmark exploitable raw materials other than sand and gravel for construction. In Greenland, there are substantial deposits of coal, iron ore, uranium and gold, none of which are currently being exploited. Hydrocarbons In 2003 the oil and gas production came from 20 fields in the North Sea. Mærsk Olie and Gas is operator of 16 of these fields, while DONG E&P is operator of three and Amerada Hess ApS operates just one. Proven oil reserves amounted to 1.23 billion barrels in 2003; oil production was 368,000 barrels per day (bpd). Mærsk Olie and Gas produces oil and gas from offshore fields in the North Sea on behalf of the Dansk Undergrunds Consortium (DUC). Proven reserves of natural gas were 82 billion cubic metres in 2003. Gas production was 8.4 billion cubic metres in 2003, 37 per cent of which is exported. Denmark has gas pipelines connecting its own gas fields to its port of Kaergard in Jutland. Denmark does not produce coal but imported 6.96 million tonnes in 2002, making it the second largest coal importer in Europe. Coal accounts for around a third of total primary energy supply. Primarily importing from South Africa, Columbia, Poland, the US and Australia, Denmark is hoping to replace coal energy with renewable sources. Energy Total electricity capacity amounts to 12.54 million kW, almost all of which is from thermal power stations. Emphasis is on energy conservation and conversion of power stations from imported coal to locally produced gas. Financial markets Stock exchange The Københavns Fondsbørs (Copenhagen Stock Exchange) trades in the equity market, investment fund market, bond market and derivatives market. Banking and insurance Denmark has a healthy banking sector which is open to foreign competition. There are around 100 commercial banks in operation, although the two largest account for 60 per cent of total bank assets. Central bank Danmarks Nationalbank Main financial centre Copenhagen Time GMT plus one hour (GMT plus two hours from late March to late September). Geography Denmark is a low-lying country in northern Europe. It consists of the peninsula of

Jutland, the islands of Zealand, Funen, Lolland, Falster and Bornholm and 401 smaller islands.The average height of the land above sea level is 30 metres and its highest point is only 173 metres above sea level. Denmark lies between the North Sea to the west and the Baltic Sea to the east. Its only land frontier is with Germany and totals 67.7km, while the coastline exceeds 7,300km. Nowhere is more than 52km from the sea. Norway lies to the north of Denmark, across the Skagerrak. Sweden lies to the north-east, its most southerly region being separated from Zealand by a narrow strait. Outlying territories of Denmark are Greenland and the Faeroe Islands in the North Atlantic Ocean. Climate Predominantly western winds bring warm, moist air from the west Atlantic, tempering the climatic influences from the east. In winter these can take the form of long periods of frost with ice-bound waters and, in summer, occasional high temperatures and drought. The average temperature in Denmark is 7.5 degrees Celsius (C); the temperature varies from - 0.1 degrees C in the coldest months to 16 degrees C in July. The average rainfall amounts to 664 mm and is distributed fairly evenly over the year, with August, harvest month, normally being the wettest. Dress codes Danes are generally informal about clothing. Businessmen usually wear jackets and ties at meetings and only adopt a dinner jacket (or long dresses for women) on very formal occasions. Entry requirements Passports Required by all, except EU visitors travelling on national ID cards. Visa Required by all except nationals of EU and Schengen Accord signatory countries, North America, Australasia or Japan. For further exceptions contact the nearest consulate. Schengen visas cover all entry needs; for business trips, an original invitation from a business contact in Denmark is necessary when applying. A Schengen visa application (offered in several languages) can be downloaded on www.eurovisa.info/ApplicationForm.htm. Currency advice/regulations No restrictions on amount of foreign currency taken in or out of country, or on amount of Danish currency taken in. Customs Personal effects duty-free, plus duty-free allowance. Health (for visitors) Medical facilities are of international standards. EU nationals are covered for the cost of medical treatment in Denmark.

Mandatory precautions None. Hotels No official rating system. Bills include 15 per cent service charge. All usual credit cards accepted. Advisable to book accommodation in Copenhagen in advance especially during summer. Public holidays Fixed dates 1 Jan (New Year’s Day), 5 Jun (Constitution Day), 25 Dec (Christmas Day), 26 Dec (Boxing Day). Variable dates Maundy Thursday, Good Friday, Easter Monday, General Prayer Day, Ascension Day, Whit Monday. Working hours Banking Mon–Fri: 0930–1600; Thu: 0930–1800. Business Mon–Fri: 0800/0830–1600/1630; offices frequently close early before the weekend or on the eve of public holidays. Government Mon–Fri: generally 0900–1700. Shops Mon–Thu: 0900–1730; Fri: 0900–1900/2000; Sat: 0900–1300/1400. First Saturday in each month most shops open: 0900–1600/1700. Telecommunications Telephone/fax The telecommunications service is fully modernised, with extensive fax, data communication and ordinary telephone facilities. Mobile phones There is a well-developed mobile telephone network in Denmark using GSM 1800 and 900 networks. Network operators include Sonofon (www.sonofon.dk), TeleDanmark (www.tdc.dk) and Orange (www.orange.dk). Internet/e-mail As would be expected in a high income European economy, there are a range of Internet Service Providers (ISPs) available in Denmark, including Telepassport (www.telepassport.dk) and Business Net Danmark. Internet cafes are available in most urban areas. There are estimated to be over 414 personal computers per 1,000 people (2002). Electricity supply 220/380V AC. Social customs/useful tips Shaking hands is the acceptable way to greet and depart from both business contacts and friends. Service is normally included on bills and further tipping is not

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Nations of the World: A Political, Economic and Business Handbook necessary in hotels, restaurants or taxis. Punctuality is expected on all occasions. Security Apart from the occasional pickpocket, the streets of Copenhagen are generally safe after dark as well as during the day. Getting there Air There are regular flights by most major international airlines. Maersk Air fly between London and the Faroe Islands via Billund in Denmark. National airline: Scandinavian Airline System (SAS) – jointly owned with Sweden and Norway. International airport/s: Copenhagen (CPH) at Kastrup, 8km south-east of capital. Business/conference centre, Internet access, duty-free shops, bars, restaurants, bank, post office, transfer hotel (maximum stay 18hrs), shower and sauna facilities. Car hire available. A new rail link between the airport and main railway station in Copenhagen takes 12 minutes. There are also regular bus services from the airport departing every 10–20 minutes taking 20 minutes. Other airport/s: Aalborg (AAL), 6km north-west of city; Aarhus (Tirstrup) (AAR), 44km north-east of city; Billund (BLL), 2km east of city, Esbjerg (EBJ), 8km from city. Airport tax: There is no airport tax. Surface Road: The new 18km toll Great Belt bridge and tunnel, linking Copenhagen to Funen, now provides the first seamless surface connection from the European continent to Copenhagen. It includes a 6.5km long suspension bridge, the world’s second longest. A second bridge and tunnel, the Øresund connection, links Copenhagen with Malmø in Sweden consisting of an 8km bridge and an 8km tunnel connected by an artificial island. Tolls are applicable for both bridges. All other traffic crosses from Germany. Rail: High-speed Intercity trains via Copenhagan airport connect to Funen (1 hour) and Jutland (2 hours) with additional connections to Malmø (Sweden) on a 30-minute journey via the Øresund link. Access from other European countries is via Germany. Water: Regular ferry services from UK, Norway, Sweden, Poland, Iceland, the Faroe Islands and Germany. Getting about National transport Air: The network of scheduled services radiates from Copenhagen. Domestic airports are generally situated between two or more cities which are within easy reach of each other. Domestic flights are usually of no more than 30 minutes duration.

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Road: About 70,000km of roads including 593km of motorway. The road system in the Danish archipelago makes frequent use of ferries. Motorways are not subject to toll duty. Buses: There are few private long-distance coaches. Rail: Approximately 2,500km of railways are operated by Danish State Railway (DSB) and a few private companies, providing a very efficient service linked to the ferry services. Country bus network operates where there are no railways. Water: Ferry services connect the islands of Zealand, Funen and Lolland and Jutland peninsula, operated by DSB. Also over 400km of inland waterways. City transport Taxis: There is a good service in all major towns. Taxis can be hailed in the street when they display their green ‘Fri’ sign, or by telephone or at ranks. Fare includes a tip. Buses, trams & metro: Good bus service in Copenhagen, including night buses until 0230. Frequent, efficient services in other main towns. Flat-rate fares are usual. Car hire Hire cars are available throughout the country at main DSB stations and all airports. They can be booked in advance through stations, international car hire firms and travel agents. A valid driving licence is required, which must be carried when driving. Most firms stipulate a minimum age between 20–25. The speed limits are 50kph in built up areas, 80kph out of town and 100kph on motorways. Even for minor speed limit offences, drivers are liable to pay heavy fines on the spot. If payment cannot be made, the car may be detained. Avoid drinking and driving when in Denmark: apart from the obvious dangers, the laws are tough. The legal maximum is 0.8 promille of alcohol in the blood and offenders may face imprisonment for anything over 2.0 promille.

BUSINESS DIRECTORY The addresses listed below are a selection only. While World of Information makes every endeavour to check these addresses, we cannot guarantee that changes have not been made, especially to telephone numbers and area codes. We would welcome any corrections. Telephone area codes The international direct dialling code (IDD) for Denmark is +45, followed by subscriber’s number. Useful telephone numbers Fire, police, ambulance 112 Emergency dental treatment 3138-0251 24-hour chemist 3314-8266

Chambers of Commerce American Chamber of Commerce in Denmark, 28 Christians Brygge, 1559 Copenhagen V (tel: 3393-2932; fax: 3313-0507; e-mail: [email protected]). Danish Chamber of Commerce, Børsen, 1217 Copenhagen K (tel: 7013-1200; fax: 7013-1201; e-mail: [email protected]). Banking Bikuben, Silkegade 8, DK-1113 Copenhagen K (tel: 3312-0133; fax: 3315-1133). Bikuben Securities, 30 Finsbury Square, London EC2A 1NR (tel: (44) (0)171 628-5522; fax: (44) (0)171 256-5445). Den Danske Bank AS (commercial bank), Holmens Kanal 2-12, DK-1092 Copenhagen K (tel: 3344-0000; fax: 3118-5873). Den Danske Bank, 75 King William Street, London EC4N 7DT (tel: (44) (020) 7410-4949, fax: (44) (020)7283-9526). Finansradetr (bankers’ association), Bankernes Hus, Amaliegade 7, DK-1256 Copenhagen (tel: 3312-0200; fax: 3393-0260). Girobank, Girostoget 1, DK-2630 Tastrup (tel: 4371-4470; fax: 4358-4470). Jyske Bank (Bank of Jutland), Vestergade 8-16, DK-8600 Silkeborg (tel: 8922-2222; fax: 8922-2499). Jyske Bank, Jutland House, 119/120 Chancery Lane, London WC2A 1HU (tel: (44) (020)7831-2778; fax: (44) (020)7405-2257. Sparekassen Nordjylland, Karlskogavej 4, DK-9000 Aalborg (tel: 9818-7311). Sydbank, Peberlyk 4, DK-6200 Aabenraa (tel: 7463-1111; fax: 7463-1320). Unibank AS, Kongens Nytorv 8, DK-1786 Copenhagen K (tel: 3333-3333; fax: 3395-5769). Unibank Plc., 107 Cheapside, London EC2V 6DA (tel: (44) (020)7726-6000; fax: (44) (020)7726-4638). Central bank Danmarks Nationalbank, Havnegade 5, DK-1093 Copenhagen (tel: 3363-6363; fax: 3363-7103; e-mail: [email protected]). Travel information Copenhagen Airport, Kastrup, Amager (tel: 3154-1701; fax: 3151-1133). Copenhagen Airtaxi, Copenhagen Airport Roskilde, DK-4000 Roskilde (tel: 391-114). Danish State Railways – train timetables (tel: 3314-1702). Reservations (tel: 3314-8800). Forened Danske Motorejere (FDM) (the Danish motoring organisation),

Denmark Blegdamsvej 124, DK-2100 Copenhagen Ø (tel: 3338-2112).

3392-3333; fax: 3332-8030; e-mail: [email protected]).

Scandinavian Airlines System (SAS), Frosundaviks Alle 1, Stockholm S-16187, Sweden (tel: (46-8)7970-000; fax: (46-8)858-741).

Ministry of Foreign Affairs, 2 Asiatisk Plads, 1448 Copenhagen K (tel: 3392-0000; fax: 3254-0533; e-mail: [email protected]; internet site: http://www.um.dk/english).

Ministry of tourism Ministry of Business and Industry (including Communications and Tourism), Slotsholmsgade 10-12, 1216 Copenhagen K (tel: 3392-3350; fax: 3312-3778; e-mail: [email protected]). National tourist organisation offices Danmarks Turistrad (tourist board), Vesterbrogade 6 D, 1620 Cogenhagen V (tel: 3311-1415; fax: 3393-1416). Ministries Ministry of Agriculture, Fisheries and Food, Holbergsgade 2, 1057 Copenhagen K (tel: 3392-3301; fax: 3314-5042; e-mail: [email protected]). Ministry of Business and Industry (including Communications and Tourism), Slotsholmsgade 10-12, 1216 Copenhagen K (tel: 3392-3350; fax: 3312-3778; e-mail: [email protected]). Ministry of Business and Industry, Invest in Denmark, Slotsholmsgade 10-12, Copenhagen K, DK-1216 (tel: 3392-3350; fax: 3312-3778; e-mail: [email protected]; internet site: http://www.investindk.com). Ministry for Culture, Nybrogade 2, 1203 Copenhagen K (tel: 3392-3370; fax: 3391-3388; e-mail: [email protected]). Ministry of Defence, Holmens Kanal 42, 1060 Copenhagen K (tel: 3392-3320; fax: 3332-0655; e-mail: [email protected]). Ministry of Ecclesiastical Affairs, Frederiksholms Kanal 21, 1220 Copenhagen K (tel: 3392-3390; fax: 3392-3913; e-mail: [email protected]). Ministry of Economic Affairs, Ved Stranden 8, 1061 Copenhagen K (tel: 3392-3222; fax: 3393-6020; e-mail: [email protected]). Ministry for Education, Fredriksholms Kanal 21-25, 1220 Copenhagen K (tel: 3392-5000; fax: 3392-5547; e-mail: [email protected]). Ministry of Employment, Holmens Kanal 20, 1060 Copenhagen K (tel: 3392-5900; fax: 3312-1378; e-mail: [email protected]). Ministry for the Environment and Energy, Hojbro Plads 4, 1200 Copenhagen K (tel: 3392-7600; fax: 3332-2227; e-mail: [email protected]). Ministry of Finance, Christiansborg Slotsplads 1, 1218 Copenhagen K (tel:

Ministry for Health, Holbergsgade 6, 1057 Copenhagen K (tel: 3392-3360; fax: 3393-1563; e-mail: [email protected]). Ministry of Housing and Urban Affairs, Slotsholmgade 1, 3, 1216 Copenhagen K (tel: 3392-6100; fax: 3392-6104; e-mail: [email protected]). Ministry for the Interior, Christiansborg Slotsplads 1, 1218 Copenhagen K (tel: 3392-3380; fax: 3311-1239; e-mail: [email protected]). Ministry of Justice, Slotsholmsgade 10, 1216 Copenhagen K (tel: 3392-3340; fax: 3393-3510; e-mail: [email protected]). Ministry of Research, Bredgade 43, 1260 Copenhagen K (tel: 3392-9700; fax: 3332-3501; e-mail: [email protected]). Ministry for Social Affairs, Holmens Kanal 22, 1060 Copenhagen K (tel: 3392-9300; fax: 3393-2518; e-mail: [email protected]). Ministry for Taxation, Slotsholmsgade 12, 1216 Copenhagen K (tel: 3392-3392; fax: 3314-9105; e-mail: [email protected]). Ministry for Transport, Fredriksholms Kanal 27, 1220 Copenhagen K (tel: 3392-3355; fax 3312-3893; e-mail: [email protected]). Parliament, Christiansborg, 1240 Copenhagen K (tel: 3337-5500; fax: 3332-8536). Prime Minister’s Office, Christiansborg, Prins Jorgens Gard 11, 1218 Copenhagen K (tel: 3392-3300; fax: 3311-1665; e-mail: [email protected]). Other useful addresses American Embassy, Dag Hammarskjolds Alle 24, DK-2100 Copenhagen Ø (tel: 423-144; fax: 430-223). British Embassy, Kastelsvej 36, DK-2100 Copenhagen Ø (tel: 264-600; fax: 381-012, 431-400). Central Telegraph Office, Købmagergade 37, DK-1150 Copenhagen K (tel: 3312-0903). Copenhagen Stock Exchange, Nikolaj Plads 6, DK-1067 Copenhagen K (tel: 3393-3366).

Danish Embassy (USA), 3200 Whithaven Street, NW, Washington DC 20008 (tel: (1)202-234-4300; fax: (1)202-328-1470; e-mail: [email protected]). Danmarks Agentforening (association of commercial agents of Denmark), Børsen, DK-1217 Copenhagen K (tel: 3314-4941). Danmarks Statistik, Sejrøgade 11, DK-2100 Copenhagen Ø (tel: 3917-3917; fax: 3118-4801). Dansk Arbejdsgiverforening (employers’ confederation), Vester Voldgade 113, DK-1503 Copenhagen V (tel: 3393-4000; fax: 3312-2976). Det Okonomiske Rad (economic council), Kampmannsgade, DK-1604 Copenhagen V (tel: 3313-5128). Grosserer Societetet, Børsen (royal exchange), DK-1217 Copenhagen (tel: 3391-2323). Industriraadet (Confederation of Danish Industries), H C Andersen’s Boulevard 18, DK-1790 Copenhagen V (tel: 3377-3377; fax: 3377-3410). IPC (International Press Centre), Snaregade 14, DK-1205 Copenhagen K (tel: 131-615; fax: 911-613). Regional Development Organisation (Copenhagen Capacity), Kongens Nytorv 6, 4, sal DK-1050 Copenhagen K (tel: 3333-0300; fax: 3333-7333). Ritzaus Bureau 1/S (news agency), Mikkel Bryggersgade 3, DK-1460 Copenhagen K. Royal Danish Embassy (USA), 3200 Whitehaven Street, NW, Washington DC 20008 (tel: (1)234-4300; fax: (1)238-1470; e-mail: [email protected]). Teknisk Forlag AS (technical press-publishing house), Skelbaekgade 4, DK-1717 Copenhagen V. Thomson Communications (Scandinavia) AS, Hestemøllestrede 6, Postboks 2181, DK-1017 Copenhagen K. Internet sites Danish web index: http://www.web-index.dk/ Statistical Office: http://www.dst.dk Trade directory for Denmark: http://uhk.dk White pages: http://infobel.com/ denmark/default.asp Yellow pages: http:// www.yellowpages.dk

Danish Convention Bureau, 27 Skindergade, 1159 Copenhagen K (tel: 3332-8601; fax: 3332-8803).

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