This is the conclusion reached by Copenhagen Economics in a recent comment in the leading Danish business newspaper ‘Børsen’. The comment has been prompted by the release of the bi-annual report from the Danish Economic Council in November 2005. The report thoroughly discusses the state of competition in Denmark and calculates the gain in economic welfare Denmark could achieve if competition was as intense as in the United States. According to the Council, the welfare gain would be an astonishing 30 billion DKK.
However, if these calculations are true and correct, Danes should be pleased by the fact that, in a European perspective, Denmark is probably the best among equals. The background study used by the Economic Council reveals that if competition in Denmark would be similar to Euro-land (an aggregation of Italy, France and Germany) then Denmark would experience a massive welfare loss. Why? Because competition is much more intense in Denmark than in Euro-land. For the Economic Council, this must be eye-opening as the Council previously repeatedly has concluded that competition in Denmark is weaker than in the rest of EU.
Further information: Dr Claus Kastberg Nielsen