Denmark has quit the so-called Frugal Four to embrace instead a “more flexible” attitude towards the European Union’s seven-year budget, the country’s prime minister, Mette Frederiksen, has said, insisting the imperative goal of rearming the bloc against Russia should take precedence over “all other priorities”.
“As Danes, we will always be tough in the negotiations on the budget. We don’t want money to be spent on (anything) that is not necessary for Europe. So we will be tough, but being a part of the Frugal Four is no longer the right place for us,” Frederiksen said on Tuesday, speaking next to Roberta Metsola, the president of the European Parliament.
“For me, the most important thing is to rearm Europe. That’s my starting point, and that’s my conclusion in all discussions. Because if Europe is not able to protect ourselves and to defend ourselves, then it’s game over at some point,” she went on.
“So rearming Europe is for me number one.”
The Frugal Four was an informal group made up of the Netherlands, Austria, Sweden and Denmark during the bloc’s budget talks in 2020. The fiscally conservative coalition, which at times was supported by Finland, pushed hard to keep common spending in check, opposing the expansionary vision espoused by France and the South.
The agreement depended on unanimity, meaning one “no” was enough to block it.
Pressure from the Frugal Four proved instrumental in reshaping the balance of the €750 billion COVID recovery fund, reducing the share of grants, which were paid collectively, and increasing the share of loans, paid back individually.
The group’s behind-the-scenes manoeuvring was closely scrutinised by the media, further consolidating its name. Critics often accused them of being uncompromising and insensitive to the needs of countries worst hit by the pandemic.
Facing Russia’s behaviour
Five years later, Brussels is gearing up for another all-out, protracted battle to approve the next common budget for the 2028-2034 period, with the European Commission expected to present the first proposal before the summer break.
Just don’t count on Denmark to advocate the virtues of frugality, Frederiksen said.
“Last time, we had a leading role in the Frugal Four. Next time, we’ll have a leading role in another group, because things have changed and the world is changing rapidly. And we have to find the right answers to all these challenges in front of us,” she said.
The premier argued that Russia’s full-scale invasion of Ukraine had irreversibly transformed the financial equation and that, as a result, “all other priorities and all other principles” should be decided “after” the bloc settles its rearmament plan.
Last month, member states agreed on a €150-billion programme of low-interest loans to drastically boost military spending across the bloc. The plan, named SAFE, is the main element of a broader initiative, “Readiness 2030”, to mobilise up to €800 billion.
“For me, the latest point will be 2030, and we are running out of time because of Russia’s behaviour,” she said, referring to an estimated date by which the Kremlin could have the necessary capabilities to attack a NATO country.
“Because of Russia’s behaviour, because of all the threats against Europe and a very uncertain situation for Europe and a very insecure world, then we need a new budget.”
Denmark is not alone in shifting its tone.
Finland and Sweden, which applied to join NATO after Russia launched its unprovoked war, have also softened their position towards the EU budget, urging the bloc to think bigger to boost defence investment and support for Kyiv.
The Netherlands, by contrast, has stood its ground to shoot down any idea of “Eurobonds” or common borrowing. Germany, which was not officially part of the Frugal Four but had similar views, has also ruled out permanent joint debt at the EU level.
Speaking on behalf of the European Parliament, Roberta Metsola agreed with Frederiksen on the need to be flexible and agile, but stressed that one political priority must not come at the expense of other crucial financial envelopes.
“What we would not want is that we put everything in one or two programmes and forget everything else,” Metsola said. “This is where we will need to come to a compromise.”
Denmark will take over the six-month presidency of the EU Council on 1 July.
