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Without the EU, Denmark would be DKK 99 billion poorer

Denmark’s GDP is 5 per cent higher - or DKK 99 billion greater - than it would have been if the country were outside the single market, a new study shows. The Confederation of Danish Industry welcomes the study.
Danish Minister for Industry, Business and Financial Affairs Brian Mikkelsen (Conservatives) launches a study that shows the value of Denmark’s EU membership.

Publiceret: 02.03.2017
Af Felix Bekkersgaard Stark mail

In 2015, the countries in the EU single market purchased Danish goods and services worth DKK 62 billion, and in 2014, 570,000 Danish jobs were directly linked to the export of goods and services to other countries in the EU single market. This corresponds to just under 21 per cent of the total employment in Denmark.

These are the conclusions of the brand new study carried out by the consultancy Højbjerre Brauer Schultz for the Danish Ministry for Industry, Business and Financial Affairs.

“The Danish economy is highly dependent on the ability to sell our goods and services in the EU’s single market. Danish companies have access to 500 million consumers under the same conditions as in the Danish market, and that’s good for growth and job creation. We therefore need the single market and to maintain the cooperation that has brought so much profit,” says Minister of Industry, Business and Financial Affairs Brian Mikkelsen (Conservatives).

See also: Hard Brexit announcement spells trouble for Danish businesses

EU has given Danes DKK 57 billion

The consultancy behind the report has also carried out a so-called “counterfactual analysis,” which reveals what Denmark has gained by being part of the single market when compared to a theoretical situation in which the country is not part of the single market.

One must take great reservations when considering such studies, and the report does factor this in but determines that the Danish GDP in 2016 is 5 per cent higher - or DKK 99 billion greater - than it would have been were the country outside the single market.

With the same reservations, the report concludes that the Danes’ private consumption is 6 per cent higher than it would have been if the country were not part of the single market.

“In other words, us Danes were able to spend DKK 57 billion more in 2016 than we would have been able to had we not been part of the EU. This clearly shows the huge gains we receive from being part of the EU,” says Anders Ladefoged, director of European Affairs at DI.

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Need for development

Although the report confirms what the Confederation of Danish Industry has previously stated regarding the value of the EU, Anders Ladefoged nonetheless points out that there is a need to adapt the single market to current developments.

“Unfortunately, many countries are implementing new special regulations and requirements that become barriers for the exports of Danish businesses. There is therefore a constant need to hold EU countries and EU institutions to their duty to uphold the principles for the free movement of goods and services in the single market. When this happens, the single market can continue to be the motor that enables Danish businesses to create growth and jobs in Denmark in the future,” says Anders Ladefoged.

In the Ministry of Industry, Business and Financial Affairs, Brian Mikkelsen is also pleased that the report underscores that Denmark’s participation in the EU single market benefits businesses and citizens.

“We therefore have a joint responsibility to ensure that the single market continues to be well-functioning and attractive in the future so we can all reap the benefits of mutual trade,” says Brian Mikkelsen.

See also: Danish companies defy fear of globalisation

We have a joint responsibility to ensure that the single market continues to be well-functioning and attractive in the future.
DANISH MINISTER FOR INDUSTRY, BUSINESS AND FINANCIAL AFFAIRS BRIAN MIKKELSEN (CONSERVATIVES)
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PUBLISHED: 3/2/2017 LAST MODIFIED: 3/2/2017