Denmark faces hefty defense bill

Defense Minister Troels Lund Poulsen predicts Denmark will need an extra 300 billion DKK for defense to meet future NATO goals. The additional spending, highlighting a transformative impact on public economics, will require a national compromise encompassing defense and climate security costs. Funding sources are not defined, though labor reform is considered. The duration to be covered by these funds remains unspecified. NATO’s strength goals call for coordinated defense capabilities in case of attacks on member states. The urgency for increased spending is partly due to Denmark’s significant support to Ukraine since the Russian invasion. Last year’s national compromise led to increased defense investment, meeting NATO’s two-percent GDP benchmark, now subject to further increase.