Government proposes 50 billion DKK package to accelerate the build-up of the Danish Defence

When the war in Ukraine ends, the Danish Defence Intelligence Service assesses that 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 Danish Defence fighting capability.  

The Danish Government proposes 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, which 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. 

Among a range of initiatives, Denmark intends to advance investments in critical capabilities.  The fund can also be used for additional military support to Ukraine. The proposal also entails a reorganization of certain authorities within the Danish Ministry of Defence and Defence Command as well as rapid implementation of more efficient decision-making processes. 

“Within two years, Russia could pose a credible threat to one or several NATO-countries if NATO does not build up its own military power in the same rate as Russia. This calls for swift, political action.”

“The urgency of the situation means that we need to be able to invest in and build-up fighting capability at increased speed. We only have a limited influence on production times, but if we use our right to award contracts directly, we can save time. Further, we have to deepen our cooperation with the industry and close allies, educating and training ourselves in the use of the equipment, so that we are ready to use it, when it is delivered”, says the Danish Defence Minister, Troels Lund Poulsen.

“The current security situation makes it abundantly clear that we need to invest in our defence at a much faster pace than before. All European countries must take greater responsibility for securitay in Europe. That is what Denmark is doing today. With the Acceleration Fund, we will allocate more than three percent of our GDP to defence over the next two years. This sends a clear signal to all our Allies that we understand the security challenges – and that we are ready to act now,” says Danish Foreign Minister Lars Løkke Rasmussen.