Denmark will hold a referendum on joining the European Union’s defense pact as Russia’s war against Ukraine looks to push the Nordic nation, which has often been skeptical about its EU membership, closer to the bloc.
The country, a founding member of the North Atlantic Treaty Organization, will also boost military spending to meet the alliance’s target of 2% of gross domestic product, Prime Minister Mette Frederiksen said on Sunday in Copenhagen as she presented a new defense deal with opposition leaders.
The Danish agreement adds to changes in long-standing security arrangements in the Nordic region since Russia’s attack, with Sweden and Finland reassessing their military non-alignment after public support for NATO entry has surged in both countries. Other European nations are also overhauling their defenses.
“Denmark belongs in the heart of Europe, without any reservations,” Frederiksen said.
The country has since 1993 had an opt-out that excludes it from the EU’s defense partnership. The nation of 5.8 million people is also outside of the euro and the bloc’s partnerships on justice and home affairs.
The referendum will be held June 1. Denmark has twice previously held ballots to get rid of opt-outs — on the euro and on justice — but Danes rejected changes both times. A recent poll by TV2 showed 49% of voters support joining the defense pact, with 27% against. The next general election is due no later than June 2023.
Under the new deal, Denmark will gradually increase military spending from 1.3% of GDP to reach the 2% goal in 2033, which means annual spending on defense will be 18 billion kroner ($2.6 billion) higher by then. The government also allocated an extra 7 billion kroner over the next two years for an immediate boost to the military, which will be financed by bringing the structural public deficit this year and next to its maximum level of 0.5% of GDP.
To finance its long-term NATO commitment, triple A-rated Denmark will revamp the budget rules, raising the deficit limit to 1% of GDP. The public debt to GDP ratio was expected to be 34.1% in 2022, the finance ministry said in its latest forecast from December.
The country plans to accelerate its push toward independence from Russian gas supplies by looking into new exploration areas in the Baltic Sea and by speeding up the upcoming Baltic Pipe gas pipeline.
When asked if wind farm developer Orsted, in which Denmark holds a majority stake, should terminate gas contracts with Russia’s Gazprom, Frederiksen said it is not recommendable for each country to have individual sanctions.
