Denmark plans a significant defence fund in response to growing geopolitical threats. The initiative, driven by concerns about a potential war in Europe, aims to quickly enhance the military’s capabilities.
The Acceleration Fund
The Danish government is establishing a special defence fund, referred to internally as the “acceleration fund,” to expedite military enhancements in light of escalating fears of a potential large-scale war in Europe and a perceived weakening of NATO. According to reports from the Danish Broadcasting Corporation (DR), this initiative is a direct response to the grim threat assessment recently released by the Danish Military Intelligence Service (FE), which forecasts increased military aggression from Russia.
Sources suggest that discussions within the government have revolved around allocating up to 100 billion kroner (approximately $14.4 billion) to this fund, though the final amount is expected to be around 50 billion kroner (about $7.2 billion). This strategic financial commitment aims to allow Denmark to purchase necessary defence equipment quickly. The initial 25 billion kroner is planned for use this year, while the remaining funds will be utilized by 2026.
Rationale Behind the Funding
Defence Minister Troels Lund Poulsen expressed that, given the current security policy landscape and the seriousness of the situation, Denmark must accelerate the procurement of military capabilities. “We need to increase our pace in acquiring what we need for combat readiness,” he shares in a statement to DR. The urgency of this move underscores Denmark’s commitment to enhancing its defence strategy amidst swirling geopolitical tensions.
Threat Perception from Russia
The backdrop for this funding initiative is a disquieting assessment from the FE, which highlights Russia’s military buildup as preparation for potential conflicts with NATO member states. The intelligence suggests that Russia may be more inclined to exercise military force against one or more NATO nations, especially if perceived weaknesses within NATO are evident. The FE predicts that Russia could potentially initiate a large-scale war in Europe within the next five years, particularly if NATO does not enhance its defensive capabilities at a comparable pace.
Significant Risks Identified
According to the FE’s assessment, should the war in Ukraine cease or become stagnant, Russia could shift significant military resources towards aggression against neighbouring countries. The intelligence outlines a troubling timeline for Russia’s military readiness: in approximately six months, Russia could mount a local conflict in a bordering country; in two years, it could pose a credible threat to multiple NATO members; and in about five years, it could be poised to launch a large-scale war across the European continent without U.S. intervention.
Military Modernization and Production Challenges
Experts have indicated that while European nations are increasing their defence budgets, they still cannot sufficiently produce the necessary arms for their self-defence. This shortcoming poses a considerable obstacle in the context of rising tensions with Russia. Mikkel Vedby Rasmussen, a political science professor at the University of Copenhagen, emphasized that Europe is not yet prepared for conflict. Rasmussen stated “We have tailored our defences for peace, not for war,” and further highlighted the need for Europe to ramp up its military capabilities and readiness.
Poland’s Military Response
In the wake of Russia’s aggressions, some European countries, notably Poland, have rapidly invested in their armed forces. Poland is reportedly poised to spend approximately 4.7 per cent of its GDP on defence this year, positioning itself as one of the most formidable military powers in Europe. This decisive action illustrates a broader shift among European nations recognizing the need for immediate and robust military readiness.
Call for European Collaboration
The Danish government, driven by the new threat evaluation, is also exploring collaborative European defence strategies, including possibly leasing military capacities that Denmark currently lacks to expedite its military enhancements. Experts agree that stronger European cooperation is key to ensuring that NATO member states are equipped to address future threats effectively.

Challenges Faced in Military Readiness
Despite optimistic projections, the FE’s threat assessment unveils a stark reality: without simultaneous advancements in NATO’s military capabilities, Europe remains vulnerable. The existing conversations around territorial conflict underscore the urgency for European nations to rethink their defence paradigms. Christine Nissen, chief analyst at the Think Tank Europa, points out that discussions of territorial war were once thought to be relegated to history books.
The Evolving Role of the United States
The shifting dynamics of U.S. involvement in European security also contribute to the uncertainties. Experts note that the changing U.S. administration and its potential strategies could significantly impact Europe’s defence posture. If Russia were to launch a large-scale war and the U.S. refrained from intervening, as noted in the FE’s assessment, Europe would be left in a precarious position.
The Importance of Infrastructure Development
The discussions also highlight a crucial need for Europe to bolster its military infrastructure to adequately support defence efforts, echoing capabilities reminiscent of those during the Cold War. In the interview with DR, Mikkel Vedby Rasmussen advocates for establishing production facilities on European soil to ensure rapid manufacturing and deployment of military resources. This lack of infrastructure is seen as a significant gap in Europe’s current defence strategy.
Preparing for Future Threats
The evolving security landscape in Europe compels nations to reconsider and strengthen their military preparedness. With the Danish government embarking on this ambitious defence funding initiative, it is clear that a collective effort among European nations is essential. As military threats from Russia continue to grow, swift action must be taken to enhance capabilities and ensure the safety and security of Europe’s borders. The delicate balance of power, underpinned by a need for preparedness, remains fundamental in these uncertain times.
