PNR Press release from the Danish Government and Denmarks Nationalbank

Given the result of the referendum Denmark shall not abrogate its exemption from Danish participation in the euro.

Denmarks EU-membership remains unchanged.

Denmark will continue the present fixed exchange rate policy vis-a- vis the euro within the framework of the narrow band of EU's exchange rate mechansim, ERM II.

The Danish economy is fundamentally sound. Danmarks Nationalbank and the Government will follow developments in financial markets closely and stand ready if need be to take measures in order to maintain and continue the fixed exchange rate policy.

The Fiscal Bill for 2001 is based on Danish participation in the euro. The negotiations on the budget will start next week, and in this context the Government is ready to tighten fiscal policy if this should prove necessary to maintain Denmark's fixed exchange rate policy.