Danish trade associations band together over military and defense issues due to geopolitical circumstances
In a bid to enhance Denmark's defense capabilities and emergency preparedness, two major financial sector trade associations, Finans Danmark and Forsikring & Pension (Insurance and Pension Denmark), have launched a partnership called The Financial Defense and Emergency Preparedness Partnership. This collaboration brings together banks, mortgage institutions, insurance companies, and pension funds, aiming to coordinate cooperation with authorities and mobilize private financial resources for defense-related investments and financing.
The partnership was initiated in response to the growing geopolitical tensions, including the war in Ukraine and increasing cyber threats. Ole Krogh Petersen, chairman of Forsikring & Pension and group CEO at PFA, stated that the partnership seeks to provide clear frameworks and better coordination regarding the defense industry's financing needs.
In June 2025, Denmark's government announced funding to establish Ukrainian defense company production in Denmark, a move that aligns with the partnership's objectives. The partnership is dedicated to offering practical solutions that align with government priorities, while maintaining the financial security of Danish savers and investors.
The partnership aims to mobilize more private resources to support Denmark's defense and security through investments and financing. This includes securing capital for critical digital and financial infrastructure in Denmark, which is crucial for emergency preparedness and national security. By integrating private financial institutions into national defense and preparedness efforts, the partnership leverages private sector tools and resources to support Denmark’s and Europe's broader security objectives.
The new security landscape necessitates closer collaboration between public and private actors, according to Ole Krogh Petersen. Michael Rasmussen, chairman of Finans Danmark, commented that banks have the will and the tools to contribute to strengthening both defense and emergency preparedness.
The partnership will map out how the sector can best contribute to government priorities, including the forthcoming defense industrial strategy and the establishment of a defense fund. Denmark's government announced a target of 3% of GDP spending on defense through 2025 and 2026 in February 2025, and the partnership aligns with this commitment. Furthermore, as a member of NATO, Denmark agreed to the alliance's new target of 3.5% of GDP for defense expenditure by 2035 in June.
In conclusion, The Financial Defense and Emergency Preparedness Partnership aims to strengthen the defense sector and emergency preparedness across Denmark and Europe, ensuring clear frameworks and better coordination regarding the defense industry's financing needs. This collaborative effort underscores the importance of private finance in supporting critical infrastructure and the defense industry, especially when public funds are under pressure.
- The Finans Danmark and Forsikring & Pension partnership, established for enhancing Denmark's defense capabilities, is dedicated to offering practical solutions that align with government priorities, including investments and financing for the defense industry.
- The partnership, in response to growing geopolitical tensions and the need for closer collaboration between public and private actors, aims to mobilize more private resources to support national defense and security, including securing capital for critical digital and financial infrastructure.
- The partnership, which aligns with Denmark's commitment to increased defense expenditure as a member of NATO, will work on mapping out the best ways for the financial sector to contribute to government priorities such as the defense industrial strategy and the establishment of a defense fund.
