ABSTRACT
This chapter describes the way in which Danish defence policy is defined by austerity and analyse the options that this leaves for the Danish armed forces. The increased capital intensiveness of the Danish armed forces is most dramatically demonstrated by the Royal Danish Navy. The Royal Danish Air Force increased the ratio by reducing the number of service personnel and procuring C-130J transporters. The Post-Cold War Business Model was remarkably consistent with the Cold War approach to NATO as an insurance premium. Danish generals are fond of describing the development of the business models for the Danish armed forces in terms of assembly and movement. The extent to which austerity sets the agenda for Danish defence policy is illustrated by the fact that the best public accounts of the economics of the armed forces. The tasks of the Danish armed forces as an international assistance force would be to contribute to the enforcement of sanctions and embargoes.
