Danish Presidency Of EU Council: Any Changes For Investors

On January 1st 2012 Denmark started its presidency of the EU Council. A small Scandinavian country is now in charge of the unofficial EU cabinet of ministers. Yet, this is one of the most dramatic periods in the history of the EU, when the very existence of the union is under threat.

What should we expect from Denmark ? What are the country’s ambitions and priorities?

 

 What is the presidency of the EU Council?

According to the experts of Masterforex-V Academy, the EU Council and the European Parliament are the EU’s major authorities (all in all, there are 7 institutions).

Each EU member has a right to preside over the EU Council. It is done by turn, yet there is no exception, regardless of economic potential, size, period of being an EU member etc. In 6 months Denmark will yield power to Cyprus . Denmark has presided over the EU Council for 7 times since joining the EU.

According to the so-called "triple-shared presidency" (or presidency trios), each 3 successive presidencies should cooperate for 1.5 years to work out a common agenda and to provide additional continuity by sharing common political programs. Now it’s time for Denmark , Cyprus and Ireland to work out a new strategic plan for the next 1.5 years.

Denmark – EU member with its own opinion and ambitions

The thing is that Denmark , which has always had its own opinion contradicting Brussels’ official standpoint, came to power in the EU during the most critical time for the union.

Denmark has always tried to stand out in a crowd:

·         First, the Danish refused to ratify the Maastricht treaty. They adopted it only after Denmark got some privileges several fields, including, legal issues, currency and security.

·         Then Denmark refused to enter the eurozone.

·         In spring 2011 the Danish government nearly closed the country’s borders, thus questioning the Schengen agreement.

In other words, Denmark ’s rebellious manners have always been a headache for Brussels.

Danish priorities

The Danish authorities have already highlighted their priorities. It should be noted, that Poland (the previous president of the EU Council), was focused on promoting the idea of expanding the EU at the expense of Croatia, Serbia, Montenegro, Ukraine and Moldova.

However, the reality made the EU authorities focus on other tasks like saving the eurozone. Denmark is going to focus on the EU’s internal problems. The major priorities are:

Responsible Europe: It implies the further development of the 2014-2020 draft budget. The major concern is budget deficit reduction, while energy efficiency and stable economic development are secondary.

Dynamic Europe: Denmark sees the only way out of the crisis, which suggests full cooperation of all the 27 EU members. It also implies join decision-making. Germany, France and Great Britain – Europe’s economic locomotives - will direct the process of coming out of the eurozone crisis. As for Denmark itself, it will contribute to the EU’s domestic market through innovation technologies. The goal is to ensure economic growth without spending more energy and natural resources.

Green Europe: Denmark is planning to strengthen the EU’s role in solving such global environmental problems as energy saving and climate changes.

Safe Europe: This aspect suggests fighting illegal migration and organized crime, strengthening the outside borders of the EU and expanding the authority of European External Action Service (EEAS).

It should be noted that Danish politicians realize what difficulties they will face.

FOREX:

In the meantime, according to the experts of Masterforex-V Academy, EURUSD has finished forming wave 5/A of Daily. If the downtrend continues, the local low 1.2857 will act as support. If it is broken, the next strong area of support is 1.2727-1.2722. In order to initiate a change of trend the price needs to break above the MF pivot and sloping channel 1.3548/1.3458 (as shown below):

 

 

 

 

Market Leader and Masterforex-V Academy would appreciate if you could participate in a survey. Please, visit the Academy’s forum for traders and investors and answer the following question:

Does it really matter which EU country presides over the EU Council?

 

 

 

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