NATO defense ministers are set to discuss a new defense spending model, dividing expenses into direct defense investments and societal preparedness. Defense Minister Troels Lund Poulsen anticipates that NATO nations will likely achieve the target of allocating five percent of their Gross Domestic Product (GDP) to defense by the early 2030s.
Poulsen stated that Denmark is on track to spend 3.2 percent of its GDP on defense this year, approaching 3.5 percent, positioning them to nearly meet the direct defense investment goal by 2025. The proposed model allocates 3.5 percent of GDP to direct defense investments and 1.5 percent to societal preparedness or resilience, totaling the 5 percent target.
According to Poulsen, Denmark may face additional expenses, while some existing expenditures could be categorized under the 1.5 percent societal preparedness allocation. He suggests a combination of incorporating current spending on societal robustness and potential new investments to fulfill the 1.5 percent requirement.
Poulsen believes that NATO will not require approval for the utilization of the 1.5 percent allocation, allowing countries to justify their expenses and demonstrate how the goal has been achieved.
In a pre-recorded Constitution Day address, Poulsen outlined proposals to strengthen Danish defense, including accelerating the extended 11-month conscription and implementing a larger mobilization defense. He emphasized the need to bolster Denmark’s mobilization defense and examine other countries’ approaches to establishing reserves for crisis or war situations. He plans to present this proposal to the settlement circle in the defense area in the coming weeks.