MARIEFRED, SWEDEN, May 27 (Reuters) - Denmark's finance minister said on Wednesday he was hoping to hold a vote next year on joining the euro zone, even as voters' support for the move was shrinking.
Finance Minister Claus Hjort Frederiksen told Reuters it was, however, "difficult to predict" if a referendum can be held in the current mandate period, which could run until late 2011.
"We hope for it (a referendum in 2010) because we think it's important that we join the euro as we have this very close link to the euro," Frederiksen said on the sidelines of a Nordic finance ministers' meeting.
The Danish crown, which is pegged to the euro, came under heavy pressure late in 2008 during the global financial crisis, forcing the central bank to substantially increase premiums to European rates to keep it in its trading band.
"We might as well harvest the benefits of being a full member."
Denmark's centre-right minority government is in favour of joining the European monetary union but new Prime Minister Lars Lokke Rasmussen has ruled out a vote this year [ID:nLN743931] and sources familiar with cabinet level discussions have said a vote this electoral term was unlikely. [ID:nLI449986]
An opinion poll this month indicated Danes have become less keen on adopting the euro -- support has dropped to 43.7 percent from 49.8 percent in January.[ID:nLE183588]
The government of the small export-dependent Nordic country on Tuesday cut its economic outlook for this year and next. [ID:nLQ697575]
It now sees a public deficit in 2010 of 3.3 percent of gross domestic product -- above the official upper limit for joining the monetary union -- but Frederiksen said he didn't believe that would stop Denmark from joining the euro.
"No, I don't think so. I think most countries will have a deficit next year and we will do everything we can to ... bring the deficit down."
The government has announced several stimulus measures -- including a hand-out of pension funds next week to stimulate private consumption -- to soften the blow from the global financial crisis.
Its main scenario is for the economy to shrink 2.5 percent this year but rise again, 1 percent, in 2010.
"That reflects our expectations of the effect of the packages," Frederiksen said.
"We hope the Danish people will have confidence in the measures we have taken and that they will start to consume and spend their money."
Frederiksen repeated that the government would do more if necessary. "But at the moment we just have to see the effects of what we have been doing." (Reporting by Daniel Dickson, writing by Anna Ringstrom; Editing by Toby Chopra)