INTERVIEW WITH MARGRETHE VESTAGER, DEPUTY PRIME MINISTER AND MINISTER FOR ECONOMIC AND INTERIOR AFFAIRS OF DENMARK : EU SHOULD ACTIVELY PROMOTE A GLOBAL FINANCIAL TRANSACTION TAX.

Eurozone countries have agreed to submit to much tighter fiscal controls in the hope that it might encourage the European Central Bank to come to their aid. Is this enough to convince sceptical investors that the currency union is sound?

It is positive that the euro area is taking decisive steps to combat the sovereign debt crisis. Decisions taken must be implemented in a convincing and credible manner. At national level we should commit to concrete steps in terms of fiscal consolidation and reforms enhancing the potential of our economies. At the EU level we should commit to enforcing the new and stronger economic governance rules. This will bring us a long way towards regaining any lost confidence in our policies and calm market fears whether the currency union is sound and sustainable.

What is your assessment of the Commission's recent proposal on eurobonds? Will this help to mitigate market turbulence?

One should recognise that issuing common bonds could create a real risk of relaxing fiscal discipline and slowing down reform efforts in individual countries. This fundamental problem and a number of technical and practical problems regarding the issuance of stability bonds would have to find robust solutions if a way forward is to be found.

Denmark has an opt-out from euro membership. Given the systemic problems now plaguing the single currency zone, was this a wise move?

Denmark has an exemption from the euro. I fully respect the decision taken by the Danish people, and it can only be changed by referendum. But the current crisis does not change my belief that in the longer run there would be tangible advantages for Denmark of euro participation. First, Denmark would gain more influence on the important economic policy developments in Europe. Second, euro participation would provide better protection against increasing interest rate spreads and currency speculation, in particular in the hypothetic case of a deep recession in Denmark. Third, euro participation would provide small, but certain, practical benefits to Danish consumers and companies through saved currency exchange...