Agreement putting Denmark at more than 3 pct. of GDP allocated for defence in 2025 and 2026

Following a proposal from the Government on February 19th, the Government and the parties behind the defence agreement have agreed to establish an Acceleration Fund channeling 50 billion DKK (~7 billion USD) in 2025 and 2026 to rapid investments in fighting capability that will strengthen the Danish Defence in the short term, including with a view to NATO demands and capability targets. 

The fund is an add-on to the existing defence agreements, and it will put Denmark above 3 pct. of GDP in allocated defence spending. The Government will look at the need for additional funding for the Danish Defence later this year after receiving the new NATO capability targets and when negotiating another agreement on the Arctic and North Atlantic. 

The agreement comes after recent assessments by the Danish Defence Intelligence Service Russia over the course of two years will be able to build up its military power to a level that will allow them to wage a war against one or several NATO-countries. This assumes that the Alliance does not build up its own military force and there is a lack of commitment to NATO Article 5. 

This puts increased demands on all NATO allies, and Denmark will shoulder its share of the burden. The urgency of the situation demands an acceleration of the build-up of the warfighting capability of the Armed Forces.  

The agreement also entails initiatives to streamline and increase efficiency of decision-making processes to advance investments and build-up of the Danish Armed Forces. This includes increased use of direct awards in acquisitions, where applicable, and increased responsibilities to the Chief of Defence of Denmark.

Quotes from Minister of Defence of Denmark in press release dated February 19th [LINK]