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Danish government wants to join European banking union

Lucie Rychla
April 30th, 2015


This article is more than 9 years old.

A small country like Denmark would benefit from a strong supervisory regime within a common European framework, believe the ministers

Photo: Ssolbergj

The Danish government has said it would, subject to Parliamentary approval, like to join the European banking union.

In a joint statement, the finance minister, Morten Østergaard, and the business and growth minister, Henrik Sass Larsen, explained that joining the union would strengthen Denmark’s financial stability and enhance banking co-operation with other EU states.

READ MORE: Buying long, selling langer: Why the decision on a banking union is important

“We are a small country with a large banking sector, and banking co-operation can anchor an already strong supervisory and crisis management regime in a strong common European framework,” stated Østergaard and Larsen.

READ MORE: Thorning-Schmidt seeks influence in EU banking union

Improved economic stability
According to the two ministers, Denmark economic stability would improve thanks to the strengthened bank co-operation.

As a member, Denmark would benefit from a shared budget that could provide funds to help save failing banks, and the Danish banking system would be supervised by EU institutions.

READ MORE: In or out, Denmark to be affected by EU banking union

Referendum not needed
A final yes to the banking union requires a majority of parliament as Denmark would not give up its sovereignty by joining the banking union and a referendum is therefore not necessary.

While one of the government parties, Radikale, has always been strongly in favour of the membership, the other, the PM’s party Socialdemokraterne, has been sceptical.


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Moreover, 21 percent of those surveyed admitted to medicating their kids with paracetamol, such as Panodil, before sending them to school.

The FOLA parents’ organisation is shocked by the findings.

“I think it is absolutely crazy. It simply cannot be that a child goes to school sick and plays with lots of other children. Then we are faced with the fact that they will infect the whole institution,” said FOLA chair Signe Nielsen.

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At the Børnehuset daycare institution in Silkeborg a meeting was called where parents were implored not to bring their sick children to school.

At Børnehuset there are fears that parents prefer to pack their kids off with a pill without informing teachers.

“We occasionally have children who that they have had a pill for breakfast,” said headteacher Susanne Bødker. “You might think that it is a Panodil more than a vitamin pill, if it is a child who has just been sick, for example.”

Parents sick and tired
Parents, when confronted, often cite pressure at work as a reason for not being able to stay at home with their children.

Many declare that they simply cannot take another day off, as they are afraid of being fired.

Allan Randrup Thomsen, a professor of virology at KU, has heavily criticised the parents’ actions, describing the current situation as a “vicious circle”.

“It promotes the spread of viruses, and it adds momentum to a cycle where parents are pressured by high levels of sick-leave. If they then choose to send the children to daycare while they are still recovering, they keep the epidemic going in daycares, and this in turn puts a greater burden on the parents.”