Denmark Abandons Frugal Four Group to Emphasize European Arms Reinforcement, According to PM Frederiksen
Tough Talk from Mette Frederiksen: "Game Over" for Europe Without Rearmament, Denmark Quits Frugal Four
Prime Minister Mette Frederiksen of Denmark has stuck it to the European Union (EU) power brokers, announcing a major shift in her country's stance on the bloc's seven-year budget negotiations. Saying straight-up that rearming Europe must be the number one priority, Frederiksen has dumped Denmark's membership in the Frugal Four.
In a bold move, Frederiksen spoke alongside Roberta Metsola, President of the European Parliament, emphasizing the urgency of rearming Europe in response to Russia's growing threats. She said, "For me, rearming Europe is number one."
The Frugal Four, an informal alliance made up of the Netherlands, Austria, Sweden, and Denmark in *the budget talks* of 2020, pushed hard to keep spending in check, opposing the expansionary vision espoused by France and the South. Though the agreement required unanimity, the Frugal Four's pressure was instrumental in reshaping the balance of the €750 billion COVID recovery fund.
However, the world is changing fast, and so are Denmark's priorities. Keeping it real, Frederiksen stated, "We're no longer part of the Frugal Four." Instead, Denmark will take the lead in a new flexible approach to the EU budget, placing rearmament at the forefront.
Five years after the formation of the Frugal Four, Brussels is preparing for another tough battle to approve the next common budget for the 2028-2034 period. The European Commission is expected to present the first proposal before the summer break. With Russia's full-scale invasion of Ukraine dramatically altering the financial equation, Frederiksen believes that all other priorities and principles should be decided after the bloc settles its rearmament plan.
Just last month, member states agreed on a €150-billion program of low-interest loans to boost military spending across the bloc. This program, named SAFE, is a crucial part of the broader initiative, "Readiness 2030," aiming to mobilize up to €800 billion for military investments. With a rough estimate by which the Kremlin could have the necessary capabilities to attack a NATO country by 2030, the urgency for rearmament is palpable.
Not alone in shifting their tone, Finland and Sweden, which applied to join NATO after Russia launched its unprovoked war, have also softened their position towards the EU budget, urging the bloc to think bigger to support defense investment and aid for Ukraine. On the other hand, the Netherlands has remained firm against any ideas of "Eurobonds" or common borrowing.
Stressing the need for flexibility, Metsola, speaking on behalf of the European Parliament, agreed with Frederiksen but emphasized that one political priority should not come at the expense of essential financial envelopes.
Denmark will take over the six-month presidency of the EU Council on 1 July. With Vladimir Putin showing no signs of slowing down, the countdown to "Readiness 2030" and increased defense spending has commenced.
Sources:
- Everything you need to know about SAFE, the EU's €150bn defence instrument
- EU budget needs 'a comprehensive overhaul' to handle shocks, says IMF
- Friedrich Merz rules out permanent joint debt at EU level in his visit to Brussels
Keywords: Mette Frederiksen, Roberta Metsola, Defense, EU Budget, European Union, Denmark, Political Priorities, Rearmament, Russia, EU Budget Negotiations, Frugal Four, European Commission, NATO, Finland, Sweden, Netherlands, Germany, Ukraine, Readiness 2030, SAFE, Military Spending, Geopolitical Landscape
In light of Russia's growing threats, Denmark, under the leadership of Prime Minister Mette Frederiksen, has prioritized rearmament and abandoned its Frugal Four alliance, emphasizing the need for a flexible approach to the EU budget. As the EU prepares for budget negotiations for the 2028-2034 period, there is a growing call for increased defense spending, such as the €150-billion SAFE program, as part of the broader initiative, "Readiness 2030." With Vladimir Putin showing no signs of slowing down, the urgency for rearmament and increased defense spending has become palpable across the European Union.