Occupation of Denmark - Economy

Economy

Denmark faced some serious economic problems during the war. The Danish economy was fundamentally hurt by the rising cost of raw material imports such as coal and oil. Furthermore, Denmark lost its main trading partner at that point, the UK. During years of occupation the Danish economy was more and more aligned on meeting German demands, which mainly meant agrarian products. The Danish authorities took an active part in the development and even initiated negotiations on a customs union. Those negotiations failed on the question whether the Danish krone should be abolished.

The blockade against Germany affected Denmark too with unfortunate results. Since the country has virtually no natural resources of its own it was very vulnerable to these price shocks and shortages. The government had foreseen the possibility of coal and oil shortages and had stockpiled some before the war, which, combined with rationing, prevented some of the worst potential problems from coming to the country. The disruptions to the European trading network were also damaging to the economy, but all things considered, Denmark did quite well compared to other countries during the war.

The country, at least certain sections of it, did so well that it has been open to the accusation of profiteering from the war. After the war there was some effort to find and punish profiteers, but the consequences and scope of these trials were far less severe than in many other countries, largely a reflection of the general acceptance of the realistic need for cooperation with Germany. On the whole, though the country fared relatively well, this is only a relative measure. Phil Giltner has worked out that Germany had a "debt" of roughly 6.9 billion Kroner to Denmark as a whole. This means that they had taken far more out of the Danish economy than they had put in, aside from the negative side effects of the war on trade.