Denmark will no longer align with the fiscally conservative "Frugal Four" in upcoming European Union budget negotiations, Prime Minister Mette Frederiksen announced Tuesday, citing the urgent need to prioritize European rearmament amid rising threats from Russia.
Speaking alongside European Parliament President Roberta Metsola, Frederiksen emphasized that while Denmark remains committed to responsible spending, security concerns now outweigh strict budgetary restraint.
"As Danes, we will always be tough in budget negotiations. We don’t want money spent on anything unnecessary for Europe," Frederiksen said. "But being part of the Frugal Four is no longer the right place for us. Rearming Europe is my number one priority—because if Europe cannot defend itself, it’s game over."
The Frugal Four—comprising Denmark, Austria, Sweden, and the Netherlands—emerged during the EU’s 2020 budget talks as a coalition pushing to limit bloc-wide spending. Their efforts reshaped the €750 billion COVID-19 recovery fund, reducing grants in favor of repayable loans.
Now, as Brussels prepares for another contentious budget debate ahead of the 2028-2034 cycle, Frederiksen’s declaration signals a broader shift. Russia’s invasion of Ukraine, she argued, has made defense spending non-negotiable.
"Last time, we led the Frugal Four. Next time, we’ll lead another group," she said. "All other priorities must come after we secure Europe’s defense."
On monday at the meeting of Nordic and Baltic NATO members in Lithuania, Frederiksen also addressed NATO’s ongoing debate over defense spending, expressing skepticism about a proposed 2032 deadline to meet targets. U.S. President Donald Trump has urged allies to allocate 5% of GDP to defense—a benchmark no NATO member currently meets. NATO Secretary General Mark Rutte has instead proposed 3.5% for direct defense and 1.5% for broader security by 2032.
"That’s too late," Frederiksen said, advocating for faster action. "We’ve already raised Denmark’s defense spending from 1.3% to over 3% since 2019. But we need to go further."
Her remarks underscore the growing pressure on European leaders to accelerate military investments as fears mount over Russia’s potential to threaten NATO allies by 2030. With the EU’s next budget battle looming, Frederiksen’s pivot suggests fiscal hawks may no longer hold the same sway—at least not in Copenhagen.