Denmark to Establish $7 Bln Fund to Strengthen Military Capabilities

Danmark has announced plans to boost its military by creating a 50 billion kroner ($7 billion) defense fund, aiming to raise the country’s defense spending to over 3% of GDP in both 2024 and 2025.

The newly proposed fund is designed to accelerate Denmark’s military preparedness as a NATO member and could also contribute to additional military support for Ukraine.

Prime Minister Mette Frederiksen described the initiative as Denmark’s largest defense investment in over 50 years, according to Danish public broadcaster DR.

Last year, Denmark allocated 2.4% of its GDP to defense, exceeding NATO’s current 2% spending target for member states.

Foreign Minister Lars Løkke Rasmussen emphasized the urgent need for faster defense investments in light of growing security concerns.

“The current security situation clearly demonstrates that we must invest in our defense at a much faster pace than before,” Rasmussen stated.

He also called on European nations to take greater responsibility for regional security, adding that the increased military spending sends a strong signal to NATO allies about Denmark’s commitment to addressing security challenges.

The Danish government referenced a recent assessment by its Defense Intelligence Service, warning that if the war in Ukraine ends or reaches a frozen conflict, Russia could pose a credible military threat to one or more NATO countries in the Baltic region within two years—especially if NATO fails to match Russia’s rearmament pace or if US support weakens.

Denmark’s announcement follows similar defense spending increases in the Baltic states.

Lithuania has pledged to raise its defense budget to between 5% and 6% of GDP by 2026 due to the threat of Russian aggression, making it the first NATO member to commit to the 5% target proposed by US President Donald Trump.

Latvia has also approved plans to increase defense spending to 4% of GDP in 2025, with a long-term goal of reaching 5%.