Denmark‘s Ministry of Defence has announced the establishment of an Acceleration Fund to increase military spending by $7 billion in 2025 and 2026. The initiative has the support of the Danish government and parties regulating Copenhagen’s defense budget.
The ministry said that with this funding, Denmark’s defense budget is expected to exceed 3 percent of its GDP during those years. The new fund is in addition to already agreed-upon defense spending, with further investment priorities to be determined later this year following NATO’s release of new capability targets.
In tandem with the fund’s creation, Copenhagen plans to streamline defense investment processes and enhance decision-making by increasing direct acquisition awards. These measures aim to bolster military readiness in response to assessments from the Danish Defence Intelligence Service, which indicated a credible Russian threat to NATO countries could emerge within two years if the alliance fails to strengthen its military capabilities swiftly.
Defence Minister Troels Lund Poulsen emphasized the situation’s urgency, stating, “We need to be able to invest in and build up fighting capability at increased speed.” He noted that while production times are beyond their control, director contract awards could accelerate the procurement process.
Foreign Minister Lars Lokke Rasmussen echoed the sentiment, asserting that the fund “sends a clear signal” to allies regarding Denmark’s commitment to addressing current security threats. “The current security situation makes it abundantly clear that we need to invest in our defense at a much faster pace than before,” he stressed.
Among Copenhagen’s notable military procurements disclosed in 2024 is the planned acquisition of up to 203 AIM-120D-3 missiles from RTX, valued at a potential $744 million and recently approved by the U.S. Department of State.