Denmark to increase defence spending by 20% in response to Russian military activity in Europe

Prime Minister Lars Lokke Rasmussen says the proposal was a move to focus more on threats closer to home

Last year, Russia tested ballistic nuclear-capable missiles that could reach Copenhagen (AFP/Getty)

Denmark is preparing to increase its defence budget by 20 per cent to combat Russia's increasing military activity in eastern and northern Europe.

Prime Minister Lars Lokke Rasmussen said the proposal was a move to focus more on threats closer to home.

"Russia is investing heavily in its military and carrying out large-scale military exercises along the Baltic Sea and the Baltic countries' borders with disregard for international norms and principles," his government said in a statement.

The rise will be carried out gradually over a five-year period, it added. The total increase would amount to 4.8 billion Danish crowns (£578m) by 2023 - the country's biggest increase in defence spending since the cold war.

The plan will lead to the formation of a new brigade of up to 4,000 soldiers that is able to operate independently - mainly in the Baltic and Nordic region.

They will be trained to use anti-air missiles, battle tanks, artillery and anti-submarine warfare equipment.

Baltic countries have grown increasingly alarmed by Russia's military strategy since the Kremlin's 2014 annexation of Ukraine's Black Sea peninsula Crimea.

Last year Russia, saying it was part of routine drills, moved ballistic nuclear-capable missiles to its enclave of Kaliningrad on the Baltic Sea and deployed its S-400 air missile defence system there. These missiles are capable of reaching Copenhagen.

Russia has dismissed concerns over its defence activities and accused the West of "whipping up hysteria" over recent large-scale military exercises.

In April, Denmark said Russia had hacked its defence computer network and gained access to employees' emails in 2015 and 2016.

The new plan will raise Denmark's defence spending to 1.3 percent of GDP in 2023, from 1.2 percent last year. Nato, which Denmark is a member of, requires its members to spend two percent of GDP on defence annually, though this is an informal target.

Denmark's defence spending has gradually dropped since 1988 when spending was above two percent of GDP, according to World Bank data.

Denmark's centre-right minority government still needs to persuade a majority in parliament to approve a defence budget increase. Its main ally, the Danish People's Party, has said it wants more troops.

Additional reporting by Reuters