Defense boost; No booze for bigots; Economy on fire
Last Week in Denmark (16.02-23.02) Episode 7 Year 5
TOP 3 News
Denmark ramping up military with an extra 50 billion DKK in defense spending.
Venues that repeatedly discriminate based on ethnicity can now lose their alcohol license.
Denmark’s economy grew by 3.6% last year, its highest rate (outside of post-COVID recovery) since 2006.
Illustration made by Diana Bălașa
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Editor HQ
State of Denmark
Denmark is no longer a country that debates whether to increase defense spending. That debate is over. Now it’s about how quickly we can spend billions and what exactly we should buy. The government just added 50 billion DKK to the defense budget for 2025-2026, on top of the nearly 200 billion already allocated through 2033. Mette Frederiksen’s message to the defense chief was simple: “Buy, buy, buy.” Procurement rules will be loosened, and the defense chief will have unprecedented authority to fast-track military acquisitions, including long-range air defense systems, drones, and new fighter jets.
The shift isn’t just about numbers; it’s about permanence. The prime minister made it clear that this military buildup is not a temporary response to the war in Ukraine. Even if peace breaks out tomorrow, Denmark will continue its path toward a heavily armed future. Defense industry leaders are already adjusting their business models accordingly, anticipating long-term growth. Danish companies are pushing for a bigger role, but with NATO expecting Denmark to contribute even more in the coming years, much of this money will likely go to foreign manufacturers.
All of this comes with a cost beyond the price tag. The era of defense cuts is over, and soon, other sectors of society will have to compete for funds in ways they haven’t in decades. As Foreign Minister Lars Løkke Rasmussen put it, "It's the last night with the cash register open.”
Follow up to “Greenland’s White Gold” documentary
DR has pulled its controversial Greenland’s “White Gold” documentary after criticism over misleading economic claims. A key financial graph was removed late in production, yet interviews referencing it remained. DR’s news editor resigned, and the case has now reached Parliament, with the Culture Minister calling it “poor journalism.”However, some commentators argue the removal sets a precedent, noting that other documentaries with factual errors were not pulled, raising concerns about ulterior motives.
Follow up to the Greenlandic saga
Kim Kielsen, the former Greenlandic leader who told Trump Greenland is not for sale, is pushing back against calls for faster independence. While Siumut’s Erik Jensen wants immediate talks with Denmark, Kielsen insists on following the agreed roadmap, citing economic and educational gaps. Party divisions have already led to defections, making it clear that the entire Siumut party doesn’t fully support the “independence now” position.
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Images of the week
🐋 A mother’s embrace beneath the waves: This year’s Underwater Photographer of the Year captures a newborn humpback whale nestled against its mother in the deep blue of French Polynesia, a moment of pure oceanic serenity. Alongside it, surreal images of drinking camels seen from beneath the water, a tiger shark’s piercing gaze, and neon-lit coral reefs highlight both the beauty and fragility of marine life. See the full collection here.
🌠 Mystery lights over Denmark. A glowing streak of light puzzled night owls across the country as a bright, unidentified object cut through the dark sky. From Jutland to Zealand, curious people took to their cameras and social media, wondering if they had just witnessed a meteor, space debris, or something more mysterious. Scientists suspect a disintegrating satellite, but the debate continues.
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Danish Politics HQ
New laws
👩🍳 More jobs for young workers. New rules mean teens aged 13–15 can now take on more tasks in their part-time jobs, from peeling potatoes to making coffee. The changes have made it easier for businesses like McDonald’s to hire more young workers, as they can now do more than just wipe tables. The government hopes this will boost youth employment, while industry leaders see it as a way to ease labor shortages. More rule changes are expected in July 2025, further expanding opportunities for young workers.
📚 New high school rules & a new education path. From 2030, students will need a minimum grade average of six to enter STX (general high school) or HHX (business high school), up from the current five. Those with a seven in their final exams can still qualify, and entrance tests will have stricter requirements. Meanwhile, a new two-year education program, EPX, will replace HF and 10th grade, offering a more practical, profession-oriented path for students.
⚖️ Denmark’s new action plan against racism. After three years in the making, the government has unveiled a 36-point action plan to combat racism. One major initiative targets discrimination in nightlife: venues that repeatedly deny entry based on ethnicity could lose their alcohol license. Other measures include offering cultural sensitivity training for bouncers, funding school trips to concentration camps, and addressing racism against Greenlanders.
🇩🇰 Denmark is tightening laws against hate crimes. Parliament has passed new measures allowing police to impose 50% harsher sentences for hate crimes in designated periods or areas where incidents spike. The law also streamlines the removal of terror-related content online. These changes take effect on March 1, 2025.
Law proposals
🇪🇺 Denmark pushes for stricter EU rules against social dumping. Alongside six other countries, Denmark is pressuring the EU Commission to tighten regulations on posting third-country workers, ensuring better conditions and fair competition. The proposal calls for minimum employment requirements before workers can be relocated to another EU country. Posting of employees refers to the temporary assignment of workers by their employer to another EU state under the host state's labor laws while maintaining social security in the home state.
Political scene
🇺🇸 U.S. troops in Denmark? Political debate heats up. The government remains committed to allowing U.S. troops to be stationed in Denmark, but Trump's latest statements have some parties questioning the timing. Konservative (Conservatives) and Radikale Venstre (Social Liberals) still support the agreement but suggest delaying the final legal steps. Meanwhile, Enhedslisten (Red-Green Alliance) outright opposes it, arguing the U.S. no longer acts as a reliable ally. The defense minister insists the plan must go forward, emphasizing Denmark’s long-standing security ties with the U.S.
Danish Economics HQ
Our money
📈 Denmark’s economy expanded by 3.6% last year, the highest growth since 2006 (excluding the post-pandemic boom). The pharmaceutical sector, led by Novo Nordisk, was the key driver, accounting for more than half of the growth. Employment also rose, with nearly 30,000 more people in jobs.
📉 Consumer confidence in Denmark has hit its lowest level in over 18 months, driven by concerns over the economy and geopolitical instability. Experts point to uncertainty surrounding Trump’s policies, potential trade wars, and global conflicts as key factors. However, despite the pessimism, spending remains steady, with higher wages, low unemployment, and rising housing prices keeping domestic consumption afloat.
💰 A new agreement secures wage increases for 180,000 retail workers. Retail employees under the new collective agreement will see their minimum monthly wages rise by 1,723 DKK over three years, with additional increases in pension contributions and flexibility. The fritvalgskonto (flexible benefits account) will increase from nine to 11 percent, allowing workers to take extra days off to care for ill family members. Overall, the deal secures wage hikes of around 10%.
🏦 46,000 bank employees will see their wages increase by 7.6% over the next three years, with annual raises of 2.4% in 2025 and 2.5% in 2026 and 2027. A new fritvalg scheme allows workers to use saved hours for family care, fertility treatments, or personal leave, offering greater work-life balance. If approved, the deal takes effect on April 1.
🤖 Denmark invests 40.6 million DKK in AI for healthcare and elderly care. Three initiatives will expand AI-assisted fracture diagnosis, optimize home care route planning, and introduce speech-to-text solutions to reduce administrative burdens. The goal is to free up staff time, improve efficiency, and enhance public service quality across municipalities and regions.
State of the markets
🇩🇪 The demand for holiday homes continues to grow, with German tourists leading the way. At the start of 2025, pre-bookings from Germany were up 1.5% compared to last year, with 257,200 weeks already reserved. Germans account for over 80% of all holiday home stays, and they are increasingly visiting outside peak season.
🇩🇪 Companies have a hard time finding employees who can speak German. Germany is Denmark’s second-largest export market, yet Danish companies are finding it harder to do business there because fewer people in Denmark speak German. Businesses like Inpateq, which services German factories, struggle to recruit technicians who can communicate with clients.
🇩🇪 Denmark’s economy is deeply tied to Germany. Germany is our second-largest export market, our top source of imports, and home to the biggest group of tourists visiting Denmark. A new analysis warns that the ongoing economic stagnation in Germany could cost Danish companies billions in lost exports and result in 3,000 job losses. A stronger German economy means more demand for Danish goods, more tourists, and a healthier trade relationship. But if Germany continues to slow down, Denmark won’t be immune to the fallout.
🥛 Arla has posted an annual revenue of 103 billion DKK (7.4% increase) and a profit nearing 3 billion DKK, reflecting the rising cost of dairy products. The price of milk and butter has surged in recent years due to global demand outpacing supply. Arla’s farmers, who now receive 3.80 DKK per liter of milk (8.6% increase) (one of the highest rates ever), are seeing the benefits, but rising production costs pose challenges to profitability.
🤗 A workplace that runs on hugs? At psychology firm Encounter, hugging isn’t just encouraged; it’s a requirement. Employees start and end their work day with a hug, a policy written into the company handbook. The founder believes it fosters warmth, support, and a sense of belonging. Prospective employees are informed upfront, so they can decide if the culture is a fit.
💰 Denmark’s military buildup fuels defense stocks. With Denmark injecting 50 billion DKK into defense spending, weapons manufacturers are booming. Companies like Germany’s Rheinmetall and Sweden’s SAAB have seen stock prices skyrocket, drawing in investors. While defense stocks were once controversial, attitudes are shifting. Private investors have even multiplied their defense stock holdings tenfold in just three years, signaling a major shift in investment trends.
Danish Daily Life HQ
📉 More people in Denmark are tuning out of the news. According to a new report, nearly one in four people in Denmark is skipping the news, citing negativity, lack of relevance, or distrust in the media. Experts warn this could leave people uninformed on key issues. Meanwhile, alternative outlets like Verdens Bedste Nyheder are gaining traction by focusing on solutions rather than crises.
🥐 Fastelavnsboller are getting a makeover. The traditional fastelavnsbolle is no longer just a simple round bun. Bakeries across Denmark are getting creative, offering everything from croissant-based versions to gold leaf and caviar-topped delicacies. While some purists may be shocked, food historians say the shape and ingredients have always evolved. What matters most is the tradition: enjoying a festive treat during the darkest months of the year.
🎶 Denmark is on a mission to bring back the joy of morning singing in schools. Culture Minister Jakob Engel-Schmidt, conductor Phillip Faber, and 18 top musicians have joined forces to get at least a quarter of all schools singing before summer break. Each artist is committing to perform at five schools, with a national competition encouraging more participation. With 10 million DKK in funding, the initiative also supports teacher training and resources to make morning singing a lasting tradition.
🎣 Sea trout are thriving in Vejle Å (River). While Vejle Fjord was declared “dead” in 2024, a new study shows sea trout in Vejle Å are doing just fine. Researchers estimate a healthy stock of 3,271 fish, and despite anglers catching over 1,000 last year, the population remains stable. Conservation efforts, like habitat restoration and ensuring free fish passage, have played a key role.
🛡️ More private companies in Denmark are now offering paid leave for employees serving in the military reserves, Home Guard, and emergency services. The expanded InterForce program allows employees to take at least five paid days annually for service. With major companies like Novo Nordisk and Mærsk already on board, up to 500 companies are expected to join, covering 200,000 employees. The move aims to strengthen Denmark’s national security by integrating businesses into defense efforts.
🧘 Keep calm; your kids will too. With Denmark ramping up defense spending and politicians warning of the most dangerous security situation in decades, some parents are struggling with how to handle their own worries and their children's. Experts advise parents to stay calm, as their emotions can easily transfer to their kids. If children ask questions, honesty is key, but explanations should be age-appropriate and reassuring. They remind parents that warnings of potential crises have come and gone throughout history and that military preparedness doesn’t mean war is imminent.
International Community HQ
New columns
This week brings new chapters of:
Tur-Retur by Laura Matheson, about re-settling in Denmark as an international after some years away. This week, Laura writes about the surprising things she finds she’s missed about Denmark.
Found in Translation by Ali Lewis. This week’s chapter is about Week Sex, Denmark’s national sex education week.
Florin Lungu’s regular column on leading as an international in Denmark. This week, he looks at why building trust with your team is essential to being an effective leader.
New reporting
Ahmet Akkoç is an expert at finding aspects of Copenhagen that you might not find yourself! This week, he writes about the National Film School of Denmark and its English events program.
It is not "defense", but militarism.
Taxpayer money spent on Peace Research in Denmark last year: 0.00 DKK.