To Prevent and Investigate Security Threats to The Country, the Danish National Security Intelligence Agency PET was Created

Wednesday 17 October 2012, Amsterdam

Danish defense expenditure, estimated to be US$4.09 bn in 2013, registered a CAGR of -2.32% during the review period 2008-12 and is expected to register a CAGR of -2.79% during the forecast period, to reach US$3.65 bn in 2017. The country’s cumulative defense expenditure over the forecast period is expected to be US$19.07 bn, of which US$14.3 bn is expected to be spent on personnel and others, and the remaining US$4.77 bn on equipment and infrastructure. Denmark’s defense budget declined in 2008 and 2009 due to the global financial crisis, but rose in 2011 as a result of the government’s decision to increase defense expenditure. The country’s defense budget is not, however, likely to recover to pre-crisis levels during the forecast period.

Defense expenditure will be driven by peacekeeping, and counter-piracy and counter-terrorism operations. In support of NATO, Denmark mainly deploys its military forces in Afghanistan, Lebanon, Kosovo, and Iraq, and Denmark supports NATO in its efforts to combat piracy around the Horn of Africa (Operation Ocean Shield), and has contributed support ships, troops, and air surveillance systems. Terrorist activity has increased around the world, and in Europe in particular, countries are facing new terrorist threats; in 2009 alone, there were 294 failed, obstructed, or successfully executed terrorist attacks in EU member countries, and 587 arrests of suspects. To prevent and investigate security threats to the country, the Danish national security intelligence agency PET was created, with a budget of DKK549 million (US$102.8 M) in 2009.

During the review period, Denmark’s ministry of defense (MoD) allocated an average of 75.6% of its total defense budget to revenue expenditure, and the remaining 24.4% to capital expenses. Capital expenditure is estimated to increase to 25.5% of the total defense budget during the forecast period as a result of increasing investment in equipment as the country modernizes its armed forces. The share of revenue expenditure is, therefore, expected to decline to 74.5% of the overall defense expenditure.