DENMARK CUTTING BACK WITH KRAG NO ASCETIC IS DENMARK'S PREMIER JENS OTTO 
KRAG, 48 . A DASHING DANE WITH A NOSE FOR OPPORTUNITY 
AND AN EYE FOR PRETTY WOMEN, HE HAS BEEN MARRIED TWICE 
: FIRST TO SWEDISH ACTRESS BIRGIT TENGROTH, CURRENTLY TO DANISH MOVIE 
STAR HELLE VIRKNER, WHO HAS BEEN NAMED AS ONE OF EUROPE'S 
TEN MOST ATTRACTIVE WOMEN . IN COPENHAGEN LAST WEEK, AFTER ONLY 
SIX MONTHS IN OFFICE, KRAG FACED HIS SUPREME POLITICAL TEST WHEN 
HE INTRODUCED INTO PARLIAMENT A COMPLEX SERIES OF MEASURES THAT WILL 
1) EXTEND ALL UNION CONTRACTS FOR TWO YEARS, THUS LIMITING WAGE 
INCREASES ; 2) FIX MAXIMUM PRICES OF ALL CONSUMER GOODS EXCEPT 
FISH AND FARM PRODUCTS ; AND 3) COMPEL ALL TAXPAYERS TO 
BUY UP TO $290 IN 4 PER CENT BONDS THAT CANNOT 
BE REDEEMED FOR FIVE YEARS . A TRAINED ECONOMIST, KRAG INSISTED 
THAT HIS DRACONIAN MEASURES ARE ESSENTIAL ; MORE THAN ANY OTHER 
NATION IN EUROPE, DENMARK HAD STAKED ITS ECONOMIC FUTURE ON JOINING 
THE COMMON MARKET ALONG WITH BRITAIN . WHEN DE GAULLE BLACKBALLED 
BRITAIN'S MEMBERSHIP, FRANCE'S PRESIDENT SHREWDLY PROMISED DENMARK IMMEDIATE ADMISSION . KRAG'S 
REPLY WAS SHARP AND TO THE POINT : " WE HAVE 
NO WISH TO BE ONE OF PRESIDENT DE GAULLE'S PIECES IN 
THE POLITICAL CHESS GAME WITH BRITAIN . IT IS IMPORTANT THAT 
WE KEEP OUR TWO MAJOR CUSTOMERS, BRITAIN AND WEST GERMANY, INSIDE 
THE SAME ORGANIZATION . IT MUST BE OUR PURPOSE IN ALL 
FIELDS TO SEE THAT NEGOTIATIONS FOR A UNIFIED EUROPE GO ON 
. " BUT KRAG'S LOYALTY TO HIS FRIENDS ABROAD HARDLY ALLAYED 
HIS HEADACHES AT HOME . RACKED BY SEVERE INFLATION, DENMARK LAST 
YEAR SAW ITS TRADE DEFICIT DANGEROUSLY INCREASED TO $486 MILLION, WHILE 
ITS CURRENCY RESERVES WERE CUT IN HALF . IN THE LAST 
FOUR YEARS, DANISH WAGES HAVE RISEN 40 PER CENT , PRODUCTION 
LESS THAN 20 PER CENT . THE STRINGENT NEW ECONOMIC PROGRAM 
DREW ANGUISHED CRIES FROM EMPLOYERS AND THE POLITICAL OPPOSITION, BUT KRAG 
CURTLY REJECTED THE TRADITIONAL DANISH COMPROMISE . KRAG'S COALITION GOVERNMENT CAN 
UNDOUBTEDLY SQUEEZE THE BILL THROUGH PARLIAMENT BY ITS USUAL ONE-VOTE MAJORITY, 
AND THE DANES WILL HAVE TO TIGHTEN THEIR BELTS FOR YEARS 
OF AUSTERITY AHEAD . 