Economy
Denmark's market economy features very efficient agriculture, up-to-date small-scale and corporate industry, extensive government welfare measures, very high living standards, a stable currency, and high dependence on foreign trade. Denmark is a net exporter of food and energy and has a comfortable balance of payments surplus and zero net foreign debt. Also of importance is the sea territory of more than 105,000 km² (40,000+ sq mi).
The Danish economy is highly unionised; 75% of its labour force are members of a trade union. Most trade unions take part in the organized system of trade unions, the organization at the highest level being the so-called LO, the Danish Confederation of Trade Unions. However, increasing numbers in the labour force choose not to become members of a trade union or to become members of one of the trade unions outside the organized system (often referred to as the yellow, in Danish gule, trade unions).
Relationships between unions and employers are generally cooperative: unions often have a day-to-day role in managing the workplace, and their representatives sit on most companies' board of directors. Rules on work schedules and pay are negotiated between unions and employers, with minimal government involvement. The unemployment rate for July 2007 was 3.3%, for a total of 90,500 persons, a reduction by 97,000 persons - 2,300 per month - or 52% since December 2003. The number of unemployed is forecast to be 65,000 in 2015. The number of people in the working age group, less disability pensioners etc., will grow by 10,000 to 2,860,000, and jobs by 70,000 to 2,790,000. Parttime jobs included. Because of the present high demand and short supply of skilled labour, especially for factory, transport, building and construction jobs, in addition to hospital nurses and physicians, the annual average working hours have risen, especially compared with the economic downturn 1987 – 1993. Increasingly, service workers of all kinds are in demand, i.e. in the postal services and as bus drivers.
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Denmark's national currency, the krone (plural: kroner), is de facto linked to the Euro through ERMII. The exchange rate is very steady at approx. 7.45 kroner per euro. Currently the krone converts to American dollars at a rate of about USD 0.19 per krone (about 5.4 kroner per dollar). (Exchange rates updated September 2007)
The government has met the economic convergence criteria for participating in the third phase (the common European currency - the Euro) of the Economic and Monetary Union of the European Union (EMU), but Denmark, in a September 2000 referendum, rejected The Monetary Union. |
In the area of sickness and unemployment, the right to benefit is always dependent on former employment and at times also on membership of an unemployment fund, which is almost always -but need not be- administered by a trade union, and the previous payment of contributions. However, the largest share of the financing is still carried by the central government and is financed from general taxation, and only to a minor degree from earmarked contributions.
The Danish welfare model is accompanied by a taxation system that is both broad based (25% VAT and excise) and with high income tax rates (minimum tax rate for adults is 39.6%).
Denmark is home to many well known multi-national companies, among them: A.P. Moller-Maersk Group (Maersk - international shipping), Lego (children's toys), Bang & Olufsen (hi-fi equipment), and the pharmaceutical companies Lundbeck and Novo Nordisk.
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