In Denmark we have a state mandated solution for electronically signing documents and communicating with the state. logging onto public services such as the IRS, child-care services, motor registration and all sorts of other stuff is done using this service. In short, if you want to deal with the government electronically in Denmark you'll have to use this solution. It's also been adopted by all Danish banks, and is the only alternative for netbanking. In other words, if you're not a luddite your only choice is to comply and use this service called NemID (EasyID)
Yes, this runs as a java plugin. And yes the company behind NemID has come out publicly and said that it shouldn't be a problem, that they don't encourage users to disable java and that everything is safe.
In other words, if your intent is malicious you can start targeting Danes with java drive-by downloads, and be fairly sure that if you hit a machine in Denmark that has the java plugin installed that machine is used for netbanking.
It's a disaster waiting to happen.