COPENHAGEN, Denmark

Fear of a possible major war in Europe and the prospect of a weakened NATO have pushed the Danish government to establish a special $7 billion fund aimed at rapidly rearming the country's defense, a state news media outlet reported on Monday.

The fund has been under development for some time, sources told DR. The expected final amount will be 50 billion Danish krone ($7.02 billion). The first 25 billion krone ($3.51 billion) is scheduled to be spent this year, with the remaining funds to be spent in 2026.

In an interview with Jyllands-Posten daily, the government confirmed plans for rapid rearmament, bypassing the EU’s usual tendering procedures. Defense Minister Troels Lund Poulsen stressed the urgency of strengthening Denmark’s military capabilities given the current security situation.

Establishment of the fund follows a grim assessment by the Danish Defense Intelligence Service, which warned that Russia is arming itself for potential large-scale conflict within five years. A recent report by the service suggested that Moscow may be willing to engage in a regional war against NATO if it sees the alliance as weakened or politically divided.

Government discussions indicate that the fund may be used to acquire air defense systems, which Denmark currently lacks. An official announcement of the fund is expected on Wednesday. The Defense Ministry has so far declined to comment on details of the fund.