The financial framework
In view of the new security political situation, the Parties agree to increase the annual Danish defence budget by
DKK 800 million from 2018 with an increased trend to DKK 4.8 billion by 2023 (table 1). The Agreement is
financed from the overall fiscal margin.
Table 1. Substantial increase for Defence
DKK billion, 2018 prices
Substantial increase
2018
0.8
2019
0.8
2020
1.7
2021
1.9
2022
2.8
2023
4.8
The substantial increase will bring the Danish Defence annual budget to a level that is 20 percent higher than
today. At the same time, significant equipment investments over the agreement period demonstrate that Denmark
aims to live up to NATO's guideline of investing 20 percent of the defence budget on new equipment.
The overall financial framework for this Agreement is shown in Appendix 1. Due to the size and complexity of
the initiatives the phasing-in will be associated with a degree of uncertainty. The actual phase-in might therefore
deviate from the estimates in the appendix. Despite the uncertainties, all initiatives will, however, be kept within
the Agreement’s general financial framework for the period 2018-2023.
With reference to the Political Agreement of 9 June 2016, the Parties note that the acquisition of new combat
aircraft is budgeted for in the Finance Act for the financial year 2018, and that changes in the cost of the acquisition
between the individual years within the agreed financial framework of the Agreement, including between the
Defence Agreement period 2018 -2023 and subsequent period until 2027 will be reflected in the annual
appropriations for the Ministry of Defence.
Strengthened Armed Forces
Together with NATO, the Danish Armed Forces must have sufficient potency, weight and robustness to deter
and prevent other countries from attacking our allies - and ultimately ourselves. First and last, our Defence is to
protect Denmark. The Danish Armed Forces will therefore to an even greater extend work towards providing
security and safety to the Danish population, including through increased support for Danish police. Evidently,
the Danish Defence plays a crucial role in protecting our security, also in case of a crisis where a majority of Danish
Troops is deployed abroad and there is a requirement for NATO reinforcements to use Denmark as a staging area.
Alongside, the Armed Forces will develop the ability and capacity to participate in international operations.
Establishment of a deployable brigade
Based on Army's current operational capabilities, work will be undertaken to build a deployable brigade which can
contribute to deter a more equal opponent and take part in collective defence under a NATO framework. The
brigade will strengthen the Armed Forces' overall fighting power and mobility and will enhance the ability to
operate in a NATO context. When not fully deployed, the brigade’s composite units can also be deployed
individually thereby also enhancing the overall ability to participate more in international missions.
The brigade comprises of new and strengthened capabilities:
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More battle tanks for operations.
Ground-based air defence.
Anti-armour weapon systems for the combat battalions.
Additional artillery.
An additional reconnaissance squadron.