Denmark is set to significantly increase its defense spending, allocating five percent of its GDP to rearmament and security. This decision, announced by Prime Minister Mette Frederiksen, has sparked surprisingly little public outcry despite its implications for other potential uses of the funds.

The increase in defense spending, from the previously agreed two percent of GDP, will amount to approximately 90 billion kroner annually. This sum could have been used for various other initiatives, such as infrastructure projects like building two Fehmarn Belt Fixed Links per year, improving education and healthcare systems, introducing more public holidays, or reducing taxes. The amount is also equivalent to almost two complete metro constructions in Copenhagen each year or three times the total compensation expected for mink farmers after the industry shutdown.

The Danish economy’s current health provides a financial cushion for this increased spending. Recent economic growth has led to a substantial increase in the so-called economic room for maneuver, projected to grow by an additional 37 billion. The government anticipates being able to fully finance the rearmament with increased public revenues by 2030.

Despite the significant financial commitment, there has been a noticeable lack of reaction from political parties regarding the allocation of these funds. The decision to prioritize defense spending comes in light of concerns about an aggressive Russia and the United States’ decreasing willingness to fund European security. Prime Minister Frederiksen is advocating for the highest possible NATO contribution, believing that a phased implementation of the five percent target by 2032 is too slow.

The decision is partly based on a risk assessment from the Defence Intelligence Service, which suggests that Russia could have the capacity to attack NATO within five years. However, this assessment has been questioned by former head of the Defence Intelligence Service Lars Findsen, who has criticized the assessment as “choreographed” to justify increased military spending.