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Denmark Ramps Up Rearmament to Counter European Tensions and American Influence.
On 19 February 2025, Denmark announced an unprecedented plan to strengthen its defense, allocating an investment of 120 billion Danish kroner (16 billion euros) by 2033. This decision marks a break from decades of budget cuts and comes amid increasing tensions in Europe, exacerbated by the war in Ukraine and uncertainty regarding U.S. engagement in the region.
In December 2024, Denmark strengthened its cooperation with Sweden by signing a $2.5 billion contract with BAE Systems for the acquisition of 115 new CV9035 MkIIIC vehicles (Picture source: Danish MoD)
The Danish strategy follows a dual approach. An acceleration fund of 50 billion kroner will be allocated for 2025-2026 to finance short-term military acquisitions and reinforce support for Ukraine. An additional 70 billion kroner will be allocated between 2027 and 2033 to modernize the armed forces, recruit personnel, and develop infrastructure. This increase will bring defense spending to 3.2% of GDP in 2025, exceeding NATO’s 2% target.
In 2024, Denmark implemented several significant measures to strengthen its military capabilities. A multiparty agreement was reached to achieve 2% of GDP in military spending that same year, six years ahead of the original plan. An allocation of 35.2 billion kroner (4.72 billion euros) was dedicated to acquiring CV90 infantry fighting vehicles, short- and medium-range air defense systems, and anti-submarine capabilities. The military service system was also reformed, increasing the number of annual conscripts from 4,700 to 7,500 and extending the service period from four to eleven months.
In December 2024, Denmark strengthened its cooperation with Sweden by signing a $2.5 billion contract with BAE Systems for the acquisition of 115 new CV9035 MkIIIC vehicles. These vehicles, equipped with upgraded turrets and advanced targeting systems, are intended to enhance Denmark’s heavy brigade and contribute to collective security.
Denmark has also increased its support for Ukraine with arms and military equipment purchases amounting to 538 million euros. These acquisitions include Bohdana artillery systems, long-range strike drones, anti-tank missiles, and anti-ship missiles. In February 2025, an additional 50 billion kroner (6.99 billion euros) was allocated to address gaps in air defense systems and expedite military equipment acquisitions.
Denmark justifies these measures by citing an increasing potential threat from Russia, which could pose a serious risk to the Baltic states and NATO members if the alliance does not strengthen its military capabilities. A recent Danish intelligence report warns of a credible threat in the Baltic Sea region within two years if the war in Ukraine ends or reaches a stalemate. The re-election of Donald Trump and shifts in U.S. foreign policy have further added to uncertainties. Statements suggesting a possible U.S. disengagement from European affairs and renewed interest in Greenland, an autonomous Danish territory, have prompted Copenhagen to reassess its strategic position.
To accelerate military acquisitions, the Danish Ministry of Defense will undergo restructuring. The Chief of Defense will be given an expanded role, with certain administrative agencies placed under direct military command. This centralization aims to streamline decision-making. Prime Minister Mette Frederiksen stated, "There is only one directive for the Chief of Defense: buy, buy, buy," adding that procurement processes will be expedited to facilitate quicker acquisitions, even if that means opting for alternatives when the best equipment is unavailable.
Denmark is also enhancing its military presence in the Arctic and North Atlantic by acquiring additional Arctic patrol vessels and long-range drones to counter Russian military activities in the region. The issue of Greenland remains a focal point, particularly after the U.S. announced in January 2024 its intention to expand its military presence on the island. In response, Frederiksen reaffirmed that "Greenland is not for sale" and emphasized Denmark’s sovereignty over the territory.
This military buildup aligns with broader European trends. Lithuania has announced an increase in its defense budget to 5-6% of GDP by 2026, while Latvia plans to reach 4% in 2025.
To finance these investments, Denmark is considering exceptional fiscal measures. The government has not ruled out introducing a "war tax" to cover rising military expenditures, which could cost an average Danish household up to 85,000 kroner (11,927 euros) per year. This policy marks a shift for a country historically cautious in budgetary matters, having maintained surpluses since 2016 and holding the best fiscal balance in the European Union since 2019.
Finally, Denmark has developed a "Danish model" to support Ukraine, facilitating direct contracts between Kyiv and European defense manufacturers to accelerate weapons production. With these changes, Denmark is positioning itself as a key player in European security.