The long-term yield spread between Denmark and Germany has virtually disappeared and even been negative in some periods. Anecdotal evidence indicates that the participants in the foreign-exchange market often take positions in the expectation of a stable krone. This contributes in itself to a stable exchange-rate development and confirms the credibility of the Danish fixed-exchange-rate policy and stable economic conditions.
Let me now turn to the second topic, financial integration. The introduction of the euro has acted as catalyst for a renewed interest in financial integration in Europe – both within the euro area and between the euro area and the non-participating EU countries.