Denmark has significantly increased its defense budget by 58 billion kroner towards 2030, coinciding with NATO’s push for member nations to bolster their military capabilities. The announcement comes just before a NATO summit where alliance members are expected to finalize new defense strength targets.

The additional funds exceed the combined upward adjustments made by Finance Minister Nicolai Wammen during the current government’s term. Wammen attributed the increase to Denmark’s strong economy and healthy public finances.

NATO Secretary General Mark Rutte outlined the alliance’s ambitious goals, including a fivefold increase in air capabilities, thousands of new tanks, and millions of rounds of ammunition. The alliance has already agreed to allocate five percent of GDP annually to military spending.

Of the five percent, 3.5 percent is earmarked for direct military expenditures, while the remaining 1.5 percent is intended for defense-related areas such as cybersecurity and critical infrastructure. Negotiations are ongoing among member countries regarding the specific inclusions within the 1.5 percent category.

To meet the 3.5 percent target for pure defense expenditures, Denmark needs to allocate 105 billion kroner annually. The total annual spending on defense and related tasks is projected to reach 150 billion kroner.

While the finance minister welcomed the budget adjustment, he stopped short of guaranteeing that it fully covers future defense expenditures. The government plans to develop an economic plan, expected this fall, to address the specific financial requirements.

The rearmament alone is estimated to cost 45 billion kroner. The increased funding may also influence the government’s priorities, potentially delaying difficult decisions on issues such as raising the retirement age.