Mette Frederiksen, Denmark’s prime minister, announced that her nation has left the group known as the Frugal Four and now supports a more adaptable approach toward the European Union’s long-term financial plan. She emphasized that bolstering the EU’s defenses against Russia must be prioritized above all else.
“As Danish citizens, we will consistently maintain a firm stance during the budget discussions. Our objective remains focused on ensuring funds aren’t allocated to anything deemed non-essential for Europe’s needs. Hence, although we’ll continue to take a strict approach, aligning ourselves with the Frugal Four no longer represents our position,” stated Frederiksen alongside Roberta Metsola, President of the European Parliament, on Tuesday.
"The top priority for me is to strengthen Europe’s defenses. This is both where I begin and end every discussion. If we can’t safeguard and stand up for ourselves, then ultimately, everything will fall apart," she continued.
Rebuilding Europe's defense capabilities is top priority for me.
The Thrifty Four was an unofficial collective comprising the Netherlands, Austria, Sweden, and Denmark. the bloc's budget talks In 2020, the financially conservative alliance, sometimes backed by Finland, strongly advocated for controlling collective expenditures. They were against the expansive approach promoted by France and the Southern nations.
The deal relied on everyone agreeing, which means a single “no” could stop it entirely.
The influence exerted by the Frugal Four played a crucial role in altering the composition of the €750 billion COVID recovery package, leading to a decrease in the portion allocated as grants—funds shared among all—and an increase in the proportion designated as loans—which individuals repay independently.
The group’s covert maneuvers were under close watch by the press, which bolstered their reputation even more. Critics frequently charged them with being inflexible and disregarding the requirements of nations hardest-hit by the crisis.
Facing Russia's behaviour
In five years, Brussels is preparing for an extensive, long-term struggle to endorse the subsequent shared budget for the duration of 2028-2034. The European Commission is anticipated to unveil the initial proposal prior to the summer recess.
Don’t expect Denmark to champion the cause of thriftiness, Frederiksen stated.
"In the past, we were part of the Frugal Four. However, next time, we will take the lead in a different coalition as circumstances have evolved and the world is transforming swiftly. We must identify suitable solutions for all these new challenges ahead," she stated.
The leader contended that Russia's comprehensive attack on Ukraine has irrevocably altered the economic landscape, asserting that consequently, “every other priority and every other principle” ought to be determined only after the group finalizes its military reinforcement strategy.
Last month, the agreement was reached among member states on a €150-billion programme Of cheap loans aimed at significantly increasing military expenditure throughout the group. This strategy, called SAFE, is the key component of an extensive program known as "Readiness 2030," designed to marshal up to €800 billion.
"For my part, the final deadline will be 2030, and we are rapidly running out of time due to Russia’s actions," she stated, referencing the situation. estimated date through which the Kremlin might possess the required abilities to assault a NATO nation.
Due to Russia's actions and the various threats facing Europe along with an increasingly unstable global scenario, we require a revised budget.
Denmark is not the only one changing its stance.
Following Russia’s unjustified invasion, Finland and Sweden, who have since sought membership in NATO, have become more lenient regarding the EU budget. They now encourage the union to adopt bolder measures aimed at enhancing defense spending and providing greater assistance to Kyiv.
In contrast, the Netherlands has firmly opposed any notion of "Eurobonds" or shared borrowing. Although Germany wasn't an official member of the Frugal Four, it held similar viewpoints. has also ruled out permanent collective debt at the European Union level.
On behalf of the European Parliament, Roberta Metsola concurred with Frederiksen about the importance of being adaptable and responsive, yet emphasized that prioritizing one political agenda should not undermine other essential budgetary areas.
What we wouldn't desire is putting all our efforts into just one or two programs and neglecting everything else," Metsola stated. "It's here that we'll have to reach a compromising agreement.
Denmark will assume the rotating six-month leadership of the EU Council starting 1st July.