it strengthens the overall european supervisory powers and creates a more level page 6 of 7 playing field for credit institutions in europe. we ought to be able to agree on opting in. joining the strengthened banking cooperation will be a natural step on the journey that financial regulation has taken over the past many years. by joining the banking cooperation, we will become part of a supervisory structure that will be a match for the large banks. and it is necessary to match them – in the interests of society and of the banks themselves. * * * * * * * * * i started by talking about pulling rabbits out of top hats and sawing ladies in half. but don't get me wrong. banking is no joking matter. regulation of the banks is necessary as they play a special role in society. financial regulation and the financial supervisory function, which has now existed in denmark for 100 years, are primarily there for the citizens and firms – not for the banks. banking and rules undergo continuous change. take for example payment services, where costs to society are almost halfed since 2009. increased competition and innovation is something we should welcome. future financial services and functions will perhaps be delivered by new actors. they may claim they are not banks and therefore should not be subject to supervision. however, the guiding principle should always be that it is the function which is regulated. the new challenges for the supervisory authority are best solved in close and binding cross - border cooperation, which is precisely what the strengthened banking cooperation is about. none of us know what tomorrow brings. but it is our duty to do our best to protect the fundamental financial functions of our society. thank you. page 7 of 7

the danish economy – and this has not changed with negative interest rates 3. the strategy for issuance of danish government bonds is focused on supporting liquidity 19. april 2017 from the brink of the abyss to aaa - country current account balance per cent of gdp - 3. 0 8. 1 international investment position per cent of gdp - 31. 8 56. 0 unemployment rate per cent 9. 5 3. 8 budget balance per cent of gdp - 9. 5 - 0. 9 central government debt per cent of gdp 44. 4 22. 8 inflation per cent 10. 1 0. 0 long - term government bond yields per cent 20. 8 0. 3 decline in structural unemployment turn - around in the danish net foreign asset position net assets, per cent of gdp current account balance, per cent of gdp - 2 - 20 - 4 - 40 - 6 - 60 net assets ( right - hand axis ) current account balance source : statistics denmark and danmarks nationalbank. looking ahead : the danish economy moves towards a moderate boom per cent boom boom boom boom - 1 - 2 - 3 output gap - 4 - 5 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 … with mounting pressure on the labour market 1, 000 persons 2, 900 2, 850 2, 800 employment forecast structural employment 2, 750 2, 700 2, 650 2, 600 source : statistics denmark and danmarks nationalbank. … but danish firms have a strong competitive position subdued wage development helped danish industrial firms improve their competitiveness vigilance required on the housing market note : real house prices. source : statistics denmark and own seasonal correction. strong growth in prices on owner - occupied flats in copenhagen index, 2010 = 1 1. 6... relative to income and level of interest rate 1. 4 1. 2 1. 0 0. 8 price of owner - occupied flats ( copenhagen and frederiksberg ) 0. 6 0. 4 estimated price ( modelled price based on income, interest rates, etc. ) 0. 2 0. 0 source : statistics denmark and danmarks nationalbank. monetary policy and negative interest rates danish exchange rate peg since 1982 kroner per euro 6. 0 6. 5 7. 0 7. 5 8. 0 8. 5 9. 0 market rate central rate fluctuation limits ( + / - 2. 25 per cent ) note :