Too close to call as the Danes go to vote on euro

Denmark goes to the polls tomorrow in a referendum on membership of the single European currency with few observers willing to…

Denmark goes to the polls tomorrow in a referendum on membership of the single European currency with few observers willing to predict the result and politicians from opposing sides clashing over the implications of a vote to reject participation in the euro.

The Foreign Minister, Mr Niels Helveg Petersen, said a victory for the No campaign would be seen abroad as an expression of "a new nationalism" in Denmark and the country would suffer "a great loss of influence" internationally. He was also concerned that rejection would cause Denmark to be demoted to class "B" status in a Europe divided into two or more tiers.

However, the leader of one of the parties in the No camp, Mr Holger K. Nielsen of the Socialist People's Party, said most of the opposition to the euro was based on democratic concerns not nationalist sentiment.

"It is very much the social democratic voters who are opposed to this project," he said. "When we say No it is very much because of democracy." The EU was being run by technocrats and bureaucrats, he said. "It's not only a question of institutions, it's a question of democratic culture."

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Surveys of public opinion continued to report contradictory findings. A Gallup poll in the daily newspaper, Berlingske Tidende, showed the No lobby at 46 per cent and the pro-euro camp at 42 per cent. A poll compiled by the Vilstrup organisation for the Politiken newspaper, however, put the Yes vote at 46 per cent and the No at 43 per cent.

The level of public indecision was reflected in the high level of undecided voters - 12 per cent in the case of the Gallup poll and 11 per cent in the figures compiled by Vilstrup.

In a last-minute attempt to woo undecided voters, the No lobby has been suggesting that if Sweden and Britain - which have stayed out of the euro-zone - were to adopt the single currency at some time in the future, perhaps at that stage Denmark could consider joining.

However, the Finance Minister, Mr Mogens Lykketoft, questioned the logic of this position. If, he said, the No lobby was claiming the Danish welfare system would be threatened by joining the euro, "why should that change if Britain and Sweden join?" Denmark had to decide on its own, and a Yes vote would encourage the British and the Swedes to join.

Although the campaign has been largely based on argument and debate, a lighter note was brought in by the Social Democratic party which has been circulating a satirical poster based on the publicity material for the film Basic Instinct.

Using a photomontage, it depicts two prominent figures from the No campaign in a passionate embrace, Mr Nielsen of the leftwing Socialist People's Party and Ms Pia Kjersgaard of the rightwing nationalist Danish People's Party. The poster motto reads: "A cynical woman; a man under pressure; in a dangerous alliance".

According to a poll of European economists, the Danish crown is likely to stay pegged to the euro even if the country rejects the common currency. Supporters say the present system, in which the crown moves in a tight band against the euro, is such a pillar of economic policy Danish authorities will defend it to the hilt if a No vote in the referendum invites an attack.