Denmark to rapidly bolster defense: Additional 50 billion kroner for the military

The Danish government aims to expedite the buildup of the Defense’s combat capabilities and allocate 50 billion kroner towards this endeavor.

This will be achieved by establishing a so-called Acceleration Fund of 50 billion kroner in 2025 and 2026.

The background to this move is the current security-political situation, where the Defense Intelligence Service assesses that once the war in Ukraine stops or reaches a stalemate and NATO does not bolster at the same pace, Russia could potentially release significant military resources and within about 2 years pose a credible threat to certain NATO countries in the Baltic Sea region if the US does not engage.

Specific decisions regarding the use of funds in the Acceleration Fund will be made based on the military expert recommendations of the Chief of Defense and will follow the approach utilized in recent years with the Ukraine Fund.

“We need to incorporate more speed into the buildup of Defense’s combat capabilities if we are to adapt to the altered security-political reality. With the Acceleration Fund, the Defense is ensured more flexible frameworks to expedite this capability-building,” says Defense Minister Troels Lund Poulsen.

This accelerates the pace of Defense’s reinforcement, although it could also lead to procedural risks.

“There must, of course, be good financial management and transparency with the funds in the Acceleration Fund, but when speed becomes a key consideration, we cannot avoid the fact that mistakes may occur along the way. It’s a premise we must accept,” says Defense Minister Troels Lund Poulsen.

“The current security-political situation clearly indicates the need to invest more rapidly in our defense and security than we have done before. All European countries must step up. Denmark is doing so today. With the Acceleration Fund, we are allocating over three percent of our GDP to defense in the next two years. This sends a clear message to all our allies that we have understood the security-political situation – and we are ready to act on it,” says Foreign Minister Lars Løkke Rasmussen.

The government also plans to implement several organizational adjustments in the Ministry of Defense’s group to ensure that decision-making processes and leadership responsibility can contribute to a swifter buildup of the Defense. This includes proposing that the Chief of Defense take on a greater responsibility in terms of the rapid buildup of combat capabilities.