Edinburgh Agreement
The Edinburgh Agreement or Edinburgh Decision is a December 1992 agreement reached at a European Council
European Council
The European Council is an institution of the European Union. It comprises the heads of state or government of the EU member states, along with the President of the European Commission and the President of the European Council, currently Herman Van Rompuy...

 meeting in Edinburgh
Edinburgh is the capital city of Scotland, the second largest city in Scotland, and the eighth most populous in the United Kingdom. The City of Edinburgh Council governs one of Scotland's 32 local government council areas. The council area includes urban Edinburgh and a rural area...

, UK, that granted Denmark
Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...

 four exceptions to the Maastricht Treaty
Maastricht Treaty
The Maastricht Treaty was signed on 7 February 1992 by the members of the European Community in Maastricht, Netherlands. On 9–10 December 1991, the same city hosted the European Council which drafted the treaty...

 so that it could be ratified by Denmark. This was necessary because, without all member states of the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...

 ratifying it, it could not come into effect. Denmark had first rejected
Danish Maastricht Treaty referendum, 1992
A referendum on the Maastricht Treaty was held in Denmark on 2 June 1992. It was rejected by 50.7% of voters with a turnout of 83.1%. The rejection was considered somewhat of a blow to the process of European integration, although the process continued...

 the Maastricht treaty, but with the addition of the Edinburgh Agreement, ratified the treaty in a 1993 referendum
Danish Maastricht Treaty referendum, 1993
A second referendum on the Maastricht Treaty was held in Denmark on 18 May 1993. After rejecting the treaty in a referendum the previous year, this time it was approved by 56.7% of voters with an 86.5% turnout.-Background:...

. The member states that already ratified the Maastricht Treaty, did not have to do so again.

The four exceptions granted to Denmark are as follows:

Section A: Citizenship

The provisions of Part Two of the Treaty establishing the European Community relating to citizenship of the Union give nationals of the Member States additional rights and protection as specified in that Part. They do not in any way take the place of national citizenship. The question whether an individual possesses the nationality of a Member State will be settled solely by reference to the national law of the Member State concerned.

With the adoption of a similar clause applying to all member states in the Amsterdam Treaty
Amsterdam Treaty
The Amsterdam Treaty, officially the Treaty of Amsterdam amending the Treaty of the European Union, the Treaties establishing the European Communities and certain related acts, was signed on 2 October 1997, and entered into force on 1 May 1999; it made substantial changes to the Maastricht Treaty,...

, this opt-out is now de facto meaningless.

Section B: Economic and monetary union

The Protocol on certain provisions relating to Denmark attached to the Treaty establishing the European Community gives Denmark the right to notify the Council of the European Communities of its position concerning participation in the third stage of Economic and Monetary Union
Economic and monetary union
An economic and monetary union is a type of trade bloc which is composed of an economic union with a monetary union. It is to be distinguished from a mere monetary union , which does not involve a common market. This is the fifth stage of economic integration...

. Denmark has given notification that it will not participate in the third stage. This notification will take effect upon the coming into effect of this decision.

As a consequence, Denmark will not participate in the single currency
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...

, will not be bound by the rules concerning economic policy which apply only to the Member States participating in the third stage of Economic and Monetary Union, and will retain its existing powers in the field of monetary policy according to its national laws and regulations, including powers of the National Bank of Denmark in the field of monetary policy.

Denmark will participate fully in the second stage of Economic and Monetary Union and will continue to participate in exchange-rate cooperation within the EMS.

Note: The benefit of this exception is also debatable. Some other EU members have opted out of the common currency without an agreed exception. The UK has their own exception, but Sweden for instance does not.

Section C: Defence policy

The Heads of State and Government note that, in response to the invitation from the Western European Union
Western European Union
The Western European Union was an international organisation tasked with implementing the Modified Treaty of Brussels , an amended version of the original 1948 Treaty of Brussels...

(WEU), Denmark has become an observer to that organisation. They also note that nothing in the Treaty on European Union commits Denmark to become a member of the WEU. Accordingly, Denmark does not participate in the elaboration and the implementation of decisions and actions of the Union which have defence implications, but will not prevent the development of closer cooperation between Member States in this area.

Section D: Justice and home affairs

Denmark will participate fully in cooperation on Justice and Home Affairs on the basis of the provisions of title VI of the Treaty on European Union.

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