The Danish government has announced plans to bolster its military by setting up a 50 billion-kroner ($7 billion) fund that it says will raise the country’s defense spending to more than 3% of gross domestic product this year and next.

Denmark’s drugmakers drove economic expansion in the fourth quarter, providing the growth needed to fund accelerated defense spending in the Nordic nation.

Denmark is making one of the biggest changes to its military budget in recent history. The government has decided to increase its defense budget by $7 billion over the next two years. This decision comes as the country faces growing concerns about security in Europe.