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.

A mood of panic is spreading across Europe after the dramatic foreign policy shift in Washington. Several Nordic countries today reacted - and took action: Denmark announced an increase in military spending to 3 percent of its GDP over the next two years,

Denmark will boost its defense spending to more than 3% of economic output as the nation seeks to counter an escalation in security threats from Russia.

The government said it will raise the country’s defence spending to more than 3% of gross domestic product (GDP) this year and next.

Danish Prime Minister Mette Frederiksen said on Wednesday that defence cuts "must never happen again". View on euronews