Denmark's Queen Margrethe II urged the nation to confront its difficult economic situation, in her traditional New Year's eve broadcast here Saturday.

"The global economic crisis is evident to all, not least here in Europe, where we face very serious problems that affect all parts of society," the Queen said, speaking from Amalienborg castle, the royal palace.

Her comments come in light of the on-going EU debt crisis that has hurt Denmark's economy, leading to falling output, rising unemployment, and reforms of cherished welfare programs.

The Queen's speech particularly stressed Denmark's unemployment problem, and the difficulties facing young Danes struggling to enter the job market.

"When times are uncertain, we too become less certain of ourselves, and of whether our skills are good enough. We hesitate to face challenges, which is understandable, but that must not lead to paralysis," the Queen said.

"As a society we must not bury ourselves in worry, but rather look our problems in the eye and do something about them," she added.

She urged Danes to take responsibility, use existing benefits and opportunities offered them by their country, and move forward.

The Queen also noted that Denmark's EU presidency, which starts Jan. 1, 2012, places "great demands" on the country, as it comes at a time of global economic crisis, but was confident that it"is able to tackle this task."