And going back even earlier in history, Denmark has been participating in the ERM since the inception of this system in 1979. The success of the current agreement on Denmark’s ERM II participation is based on the high level of convergence that has been achieved between Denmark and the euro area.
The Danish Krone enjoys a high degree of stability and at this point in time it is the only ERM II participant with a mutually agreed fluctuation band that is (considerably) narrower than the standard +/- 15% band. This remarkable level of convergence is the result of sustained stability-oriented macroeconomic policies combined with forward-looking structural reforms.