Denmark Increases Defense Spending And Gradually Phases Out Russian Gas

Danish Prime Minister Mette Frederiksen holds a press conference in Copenhagen, Denmark on March 6, 2022. Prime Minister Frederiksen announced on Sunday evening that Denmark would hold a referendum on June 1 on its withdrawal from EU protection. Ritzau Scanpix/Emil Helms via REUTERS

COPENHAGEN, March 6 – Denmark will significantly increase its defense budget and seek to become independent of Russian natural gas in response to Russia’s invasion of Ukraine, Danish Prime Minister Mette Frederiksen said Sunday.

The Nordic country will gradually increase its defense spending to reach 2% of GDP by 2033, the equivalent of an increase in annual defense spending of around DKK 18 billion ($2.65 billion), in line with an agreement between the major parliamentary parties.

The parties also agreed to allocate 7 billion crowns over the next two years to strengthen the defense, diplomatic and humanitarian efforts of Denmark.

“Historic times call for historic decisions,” Frederiksen said at a press briefing in Copenhagen, adding that this is “the biggest investment in Danish defense in recent times.”

Denmark, a NATO member, agreed in 2019 to increase military spending from 1.35% of its economic output to 1.5% by 2023, but has been pressured by the United States to meet NATO’s 2% target.

Last week, Germany said it would sharply increase its defense spending to more than 2% of GDP and quickly reduce its dependence on Russian energy resources. More

“Putin’s senseless and brutal attack on Ukraine heralded a new era in Europe, a new reality,” Frederiksen said.

“The Ukrainian struggle is not only the struggle of Ukraine, it is a test of the strength of everything we believe in, our values, democracy, human rights, peace and freedom.”

To cope with higher defense spending, Denmark’s current budget constraints will be eased, with the deficit turning negative after 2025.

Frederiksen said the main parliamentary parties agreed that Denmark should become independent of Russian gas “as soon as possible,” though no time frame was set.

They also agreed that a referendum should be held on June 1 on participation in the European Union’s Common Security and Defense Policy (CSDP), almost 30 years after the Danes decided to opt out.

Participation in the CSDP will allow Denmark to take part in joint EU military operations and cooperate in developing and acquiring military capabilities within the EU.

Denmark achieved exclusion from some areas of EU policy, including the euro currency and defense and security policy, in the 1992 referendum on the Maastricht Treaty, which laid the foundation for the modern European Union. ($1 = DKK 6.8038)

Reporting by Nikolai Skidsgaard and Stine Jacobsen; a letter from Jacob Gronholt-Pedersen; Edited by Raissa Kasolovsky and Kevin Liffey

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