Denmark coalition offers relief to EC neighbours

DENMARK'S first Social Democratic government for a decade will take office on Monday, to the relief of its European neighbours, who feared the effect of political uncertainty in Copenhagen, which holds the EC presidency for the next six months.

After eight days of political horse-trading, Poul Nyrup Rasmussen, the Social Democratic leader and future prime minister, managed yesterday to break the deadlock and secure the support of three centre parties. The coalition thus created will, by a whisker, be the first majority government since 1972, with control of 90 seats in the 179-seat parliament.

Last night Queen Margrethe gave her formal approval to the government programme that has been at the root of a week's difficult negotiations. The coalition brings together an unexpected combination of political tendencies. Many observers had suggested that the fiscally conservative Radical Party would not be able to agree on the Social Democrats' plans for tax and labour market reforms.

It was the decision of the tiny Radical Party to switch support from their one-time ally, the former prime minister Poul Schluter, to Mr Rasmussen that swung the political balance last Friday after Mr Schluter was forced to resign in a political scandal.

Mr Schluter was found to have lied to parliament over the details of government attempts illegally to prevent Tamil refugees from being joined in Denmark by their families. The harshness of the judicial report surprised nobody more than Mr Schluter - he had himself ordered the inquiry.

The Radicals, as a reward for their crucial support, are likely to see their spokesman for European affairs, Helveg Petersen, appointed foreign minister. He, like the rest of the coaltion, can be expected to campaign hard to ensure Danes vote 'yes' in the second referendum on the Maastricht treaty that is planned for April or May.

The policy on Europe, agreed by all but one of the eight parliamentary parties, will not change with the government. The main planks of the presidency programme - enlargement, environmental protection and economic growth - reflect themes of the Social Democrats' 21-page government programme, A New Start, published yesterday.

The consensual nature of Danish politics suggests that even in domestic terms the start will not be that new. The Social Democrats are pledged to Mr Schluter's line of low inflation and the Radical Party will ensure the promise is kept. The fight against unemployment, topping 11 per cent in Denmark, is a priority at home and in Europe.

The inauguration of the new government will delay a special council of transport and environment ministers in Brussels on Monday. The meeting, at the behest of the Danes, will consider ways of tightening safety at sea in the wake of the Shetland Isles disaster, in which the Braer oil tanker ran aground.

As a parting gift, the outgoing foreign minister, Uffe Ellemann- Jensen, has left his successor a delicate diplomatic problem. Mr Ellemann-Jensen's criticism of Greece for blocking recognition of Macedonia has resulted in a call by the Consumers' Union of Greece to boycott Danish products. This could backfire, since most of the feta cheese on sale in Europe is made in Denmark.