The Danish Government plans to boost the Defence Agreement and its Ukraine Assistance Fund

An extra 650 million euros for the Defence Agreement and further 3.1 bn euros for the Ukraine Assistance Fund; these extra funds are part of the plan for 2030 unveiled today.

“These are uncertain times. They demand constant reassessment of the threats, and require us to adapt to new threats. We must ensure that our Armed Forces are strong, and it is necessary to ensure our long-term support for Ukraine in their fight for freedom, which also has implications for us Danes. As a consequence, our economic plan for 2030 comes with increased financing, stronger Danish Armed Forces and a significant increase in the military support for Ukraine in the years to come”, says Danish Minister of Defence Troels Lund Poulsen.

The Danish Armed Forces are in a build-up of historic proportions, while Denmark maintains its role as one of the staunchest supporters of Ukraine. These two core priorities for the Danish government focus on the most important, current security issues for Denmark; thus the increased funding.

Over the years to come, the Danish government now pledges to continue its sizeable support of Ukraine, and therefore plans to boost the Ukraine Assistance Fund with 1.4 bn euros in 2025, 1 bn in 2026, and 700 million in 2027.

The Government also wants to increase the funding embedded in the imminent Defence Agreement. Back in June, the government and a large majority in Parliament decided on a 10-year 20-bn-euro financial defence package for 2024 to 2033. The government now wants to add 400 million euros in 2028 and 270 million euros in 2029 on top of this agreement. The combined total entailed in the Defence Agreement thus comes out at close to 20.7 bn euros.

”The Danish Armed Forces are facing big challenges. We want to ensure a significant boost of Danish military capabilities and enhance Danish security, and we want to do it in a smart way. This requires planning, and that is why we will continue phasing in new funds over the next years to ensure that we maximize the output of our investment in security”, says Troels Lund Poulsen.

With previous agreements, Denmark has allocated funds amounting to two percent of its GDP on its military and security in 2023 and 2024, in line with NATO pledges. With the new funds, Denmark will allocate funds amounting to two percent of national GDPs on defence expenditures from 2025 and onwards as well.