In a significant move to enhance its military capabilities, Denmark has announced plans to allocate over 3 percent of its GDP to defense over the next two years, which equates to approximately 50 billion Danish kroner, or $7 billion. This ambitious initiative is part of a broader strategy to fortify the nation’s military presence and readiness amid increasing geopolitical tensions, particularly with Russia.
A key component of this defense investment plan is the establishment of an Acceleration Fund aimed at expediting military upgrades and equipment acquisitions. The Danish government is looking to streamline procurement processes, enabling faster delivery of necessary military hardware. Danish Defence Minister Troels Lund Poulsen emphasized the urgency of building up the country’s fighting capabilities more rapidly, noting, “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.”
Poulsen further highlighted the importance of collaboration with the defense industry and close allies, emphasizing the need for comprehensive education and training in the use of the new equipment. This preparation is crucial to ensure that the Danish military is ready to deploy its capabilities immediately upon delivery of new assets.
The initiative is particularly aimed at bolstering Denmark’s deterrence measures against Russia. Recent evaluations from the Danish Defence Intelligence Service indicated that Russia may be capable of restoring its military strength within two years to a level that could pose a threat to one or more NATO countries. In this context, Denmark’s increased defense spending is seen as a proactive response to the evolving security landscape in Europe.
This shift in Denmark’s defense posture mirrors a broader trend among NATO member states, which have reevaluated their defense expenditures in light of Russia’s ongoing military actions in Ukraine. The war has prompted NATO to reinforce its eastern flank and prioritize increased defense budgets across the alliance. While the NATO defense spending target is officially set at 2 percent of GDP, many countries are pushing beyond this threshold to address rising security concerns.
For instance, UK Prime Minister Keir Starmer recently committed to raising the UK’s defense spending to 2.5 percent of GDP by 2027, with aspirations to eventually reach 3 percent, a level not seen since the Cold War. Lithuania is even more ambitious, planning to allocate between 5 and 6 percent of its GDP annually from 2026 to 2030. Meanwhile, former US President Donald Trump has advocated for doubling NATO allies’ spending targets to 5 percent.
As these countries take significant steps to bolster their defense capabilities, the dynamics within NATO and the broader European security landscape continue to evolve, driven by the necessity of addressing potential threats and ensuring collective defense readiness.
