Denmark has announced that it will invest DKK 38Bln ($5.6Bln) to modernize its defense over the next 10 years and rectify the mismanagement and neglect which has resulted from misguided political decisions.
The Danish Ministry of Defense said in a statement that it will allocate some DKK 27Bln ($4Bln) on gear, equipment, buildings, information technology and personnel, and a further DKK 11Bln on new investments, citing "the current geopolitical situation" which needs "more resources" to ensure present levels of defense.
"We have to recognize that we politicians have made decisions based on assumptions that turned out to be incorrect. This means that we are now faced with a major task: to restore the foundations of defense before building on them," Defense Minister Troels Lund Poulsen said in a statement.
Denmark's own press described the process as "plugging holes". Earlier, a major audit of the Danish armed forces revealed that equipment and barracks had suffered a huge degree of wear and tear, there were severe personnel shortages and massive IT challenges. The review set in motion further budget negotiations.
While announcing an increase in military expenditure, Denmark added that it planned to reach the NATO spending target of 2 percent by 2030.
However, Denmark's outsized military commitment has taken its toll on the state coffers, prompting the government to abolish an age-old Christian holiday called the Great Prayer Day, supposedly to replenish state finances that are running dry.
It also forced the Nordic country to curtail its overseas presence in Iraq starting from early 2024 and instead focus on the Baltic countries, offering NATO a battalion to defend the region. The battalion is expected to consist of up to 1,200 soldiers, and is expected to be deployed in Latvia between four and six months every year.
However, these plans may yet founder because of a drastic shortage of personnel. According to reports, none of the Danish Army's regiments can muster full strength at present. The shortage ranges from "only" a 10th to more than a third. The Navy is no better, where Arctic patrols have to be paused so that crews can rest or sleep since there are insufficient number to patrol 24/7.
Earlier, Denmark's Nordic peers either announced or have already implemented heavy rises i in their military budgets: Norway pledged to use the windfall energy profits that dwarfed its military spending (relative to GDP) and reach NATO's spending goal by 2026. Finland, a newly fledged NATO member, has already increased its military spending to Cold War levels.