Denmark’s defense spending is rapidly depleting allocated funds due to significant investments in upgrading the Armed Forces. Since the summer of 2023, an average of 293 million kroner per day has been spent, raising concerns about the sustainability of the current financial framework.
Despite billions remaining on paper, the allocated funds are quickly being exhausted. Carsten Bach of the Liberal Alliance expressed frustration, noting that “the coffers are almost empty, even though there are many billions left.” The defense agreement, covering 2024-2033, has allocated 174.9 billion kroner out of a total of 195 billion, leaving only 20.1 billion kroner.
The government’s Acceleration Fund, intended for new purchases in 2025 and 2026, also faces depletion. While it initially held 50 billion kroner, only 36.3 billion kroner remain for new acquisitions. An additional reserve of 70 billion kroner is designated for derived costs such as maintenance, ammunition, and personnel.
Opposition parties and experts voice concerns that the remaining funds will not suffice for planned investments. Mikkel Vedby Rasmussen, a professor at the University of Copenhagen, emphasizes the need for continued investment to avoid repeating past mistakes. Future investments include a new Arctic agreement, potential 50 billion kroner for property and IT upgrades, and a naval plan estimated at over 40 billion kroner.
The opposition criticizes the government for its silence on financing upcoming expenses. SF’s Anne Valentina Berthelsen labeled it “irresponsible” and proposed a “security tax” to fund investments. The Democrats of Denmark echoed this concern, stating they have not received answers from Defense Minister Troels Lund Poulsen on how new initiatives will be funded.
The delay in deciding on new ships for the Navy is attributed to the depleted war chest. Carsten Bach suggests the government is struggling to make difficult decisions and is relying on existing funds. Rasmus Jarlov of the Conservatives stressed the importance of speed and urged action, citing the state budget surplus.
Defense Minister Troels Lund Poulsen dismissed the opposition’s criticism. He stated that the government is awaiting NATO’s force goals before initiating political discussions on financing. While acknowledging the ambition to finalize the Arctic Package 2 and naval plan before the summer, he refrained from providing specific figures or commitments beyond already allocated funds.