Denmark is proposing establishing a military alliance between the Nordic countries, the Baltic states, and Poland to strengthen resistance against Russia.

This proposal is outlined in an analysis by Danish experts, published in the Berlingske newspaper.

The proposal was inspired by a growing concern over the reduction of U.S. security guarantees for Europe within NATO, as well as the evolving relationship between the United States and Russia, which has been waging a brutal war of aggression against Ukraine for the past 3 years.

Professor of Military Studies Mikkel Vedby Rasmussen, along with economists Lars Christensen and Thomas Gress, argue that for the defense alliance of the Baltic States, Northern Europe, and Poland to effectively resist Russia, it must be underpinned by a robust economy.

They suggest that if Russia attempts to match the arms race, it could ultimately lead to the collapse of its economy.

Economist Lars Christensen draws parallels with the 1980s policy of U.S. President Ronald Reagan, who initiated a massive rearmament of the U.S. military, putting such pressure on the Soviet Union’s economy that it struggled to keep pace.

According to Christensen, “The combined economies of the countries in the proposed alliance are 1.4 times the size of Russia’s,” a crucial factor in the event of an arms race.

The demographic challenges, which are much greater in the case of Russia, are also expected to work in Denmark’s and the region’s favor.

Money for weapons

Danish experts propose that the economic foundation of the alliance be built around a shared financial institution, similar to the Nordic Investment Bank, with the ability to issue its own bonds.

“This would allow Poland and the Baltic states to borrow funds for armaments at favorable Scandinavian interest rates,” Christensen suggests.

However, the expert notes that the Achilles’ heel of a possible alliance would be the lack of nuclear weapons, unlike Russia. Because now the countries of Northern Europe, the Baltic States and Poland are protected by the “nuclear umbrella” of NATO countries that have such weapons.

As previously reported, European Commission President Ursula von der Leyen outlined a comprehensive plan aimed at enhancing Europe’s military capabilities while providing continued support to Ukraine. Europe has the potential to mobilize up to €800 billion to bolster its defense capabilities.