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 said on Monday it would spend 14.6 billion Danish kroner ($2.05 billion) boosting its military capabilities in the Arctic – a decision that comes amid continuing furor following US President Donald Trump’s renewed interest in controlling Greenland,

Denmark plans to accelerate its defense modernization by spending an additional 50 billion krone ($7 billion) in 2025 and 2026, the country’s government has announced. Copenhagen will create an Acceleration Fund to enable faster procurements to support the country’s defense and security.

Denmark will increase its defence budget by a combined 50 billion crowns ($6.99 billion) this year and next to address acute military shortcomings, the Nordic country's prime minister said on Wednesday.

Copenhagen steps up its defense budget amid Trump’s campaign to buy Greenland and determination to strike a deal with Russia.

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.