In the last few months, long-term interest rates in particular have begun to rise again, and the Danish yield spread to the euro area is no longer negative. We have known all along that interest rates would normalise at some point, but as long as this simply means that our neighbouring economies are recovering, it is not a problem.
I have talked about the importance of credible economic policy. This crisis has emphasised the need for credibility – at both macro and micro level. In Denmark, several banks had managements who were over-optimistic when it came to calculating the need for loan impairment charges. Roskilde Bank and Tønder Bank are sad examples. Both of these banks are history now.