DENMARK — Denmark has lost its international trade monopoly and now faces a major trade crisis.
In the first months of 2018, the Danish government expects to pay out about EUR 12 billion ($14.5 billion) to German trade partners.
It’s been a rough year for Denmark.
The country’s economy has slowed and unemployment has risen to record levels.
Danish authorities have blamed a lack of transparency and a crackdown on foreign competition for the slowdown.
Denmark is a major exporter of luxury goods and the biggest buyer of luxury cars in Europe.
The latest data shows that Denmark’s exports to Germany fell by more than half in January to EUR 13.4 billion, while imports dropped by 10.2 billion to EUR 14.3 billion.
In April, Danish authorities announced that they had found no evidence of any wrongdoing by Danish companies in the German-led export-import cartel.
In May, the government began to clamp down on foreign firms.
The government has already ordered the closure of two German-owned companies in Denmark, and has promised to introduce a new set of laws that would make it illegal for a company to use its dominance over the export-oriented Danish manufacturing sector to unfairly benefit other countries.
The trade-related fallout is the biggest challenge to Denmark’s fragile economy.
But it has also put the country’s fragile political stability in jeopardy.
“The impact of the Danish crisis is going to be significant for the country,” said Johan Buitelaar, professor at the Free University of Brussels.
“There’s a political climate that doesn’t want Denmark to be part of this European system.”
Buitelaer said it’s unlikely that Denmark will regain its trade dominance anytime soon.
“It’s a very big challenge, but I’m not expecting any real change in the near future.
I’m afraid that’s the situation we’re in,” he said.
Denmark has long been a leader in global trade.
But its economic growth has been slowing, and its unemployment rate has risen.
In the past two years, Denmark has seen a sharp rise in the number of its citizens applying for asylum in the European Union.
The Danish government has promised a massive increase in its tax on foreign companies.
But the government has faced criticism for failing to provide enough evidence that foreign companies have been abusing their dominance over Danish markets.
The issue was a key issue in the June referendum on the European Common Agricultural Policy, which would give Denmark a more liberal tax regime and give it more freedom to regulate the agricultural sector.
The government also has proposed new laws to regulate foreign investment in the dairy industry.
Last week, the country agreed to impose a 10 per cent tax on imported dairy products.
But in a statement, the Ministry of Finance said the government is still reviewing the proposed tax.
The country’s main trade union said it will now call for a general strike to protest the tax, which it says will “lead to increased unemployment, low wages, and the loss of employment opportunities for our members.”
The Danish economy grew by 0.9 per cent in the first half of 2018.
But growth has since slowed to a slow 0.6 per cent.
In June, Denmark’s gross domestic product fell by 0% compared to the same month last year.
The economic outlook for 2019 is uncertain.
The Danish government says the unemployment rate is likely to rise by 1.5 percentage points to 5.7 per cent, and says the number seeking asylum will rise by 20 per cent to 2.6 million.
The unemployment rate remains above the national average.
But Buitlaar says the government’s forecasts for the coming months are more optimistic than the official numbers.
“I think we’re still expecting a recession, but that’s not necessarily a bad thing,” he says.