In general, it does not make sense to speak of “structurally weak competitiveness”. Weak competitiveness is temporary, not permanent. After a while it will strengthen as a result of developments in wages and exchange rates. With the fixed-exchange-rate policy, Denmark has deselected the latter option. Over a period of time, extensive structural reforms have been introduced in Denmark.
4  BIS central bankers’ speeches  One of the most important measures in this respect concerns banking regulation. Banks should back government bonds with capital that corresponds to their risk. For one thing, this would strengthen the market mechanism: banks would have an incentive to demand appropriate risk premiums for government bonds. That, in turn, would be an important market signal for governments.