Other Issues
DKK 2 million is to be allocated for the work performed by “The Blue Beret” association in support of personnel who have been deployed in international service.

DKK 7 million of the Ministry of Defence budget is to be allocated each year for carrying out specific projects related to defence policy and security policy at the Danish Institute for International Studies (DIIS). An additional DKK 5 million and equivalent of approximately 10 fulltime employees are designated for the establishment of an independent security studies research capacity, with focus on defence policy, organisationally linked to the Defence College. 

Danish Defence’s personnel composition is to be continuously adapted, under consideration of Danish Defence’s task performance, personnel-related flexibility, recruitment potential, structural adjustments, and more. The Armed Forces are to be a modern, dynamic and attractive workplace, capable of recruiting both genders. The Armed Forces will therefore focus on ensuring that recruitment for the Armed Forces follows the general development in society, aiming at a broad and varied recruitment base representing the diversity of the Danish society. The requirements including physical and psychological requirements for joining the Danish Defence are to be maintained.

An anonymous survey concerning attitudes to the mission and the local population will be carried out among Danish soldiers in international missions. The survey will also evaluate the training efforts of privates and officers to stressful tasks abroad in order to assess if the existing preparations and training is adequate. The result of the survey will be presented to the accord parties.
The personnel agreement system within the responsibility of the Ministry of Defence is sought to be simplified following negotiations with relevant personnel organisations. The manning level of the Danish Defence counted in full-time equivalents are to be reduced from approximately 29,000, of which 6,500 are full-time conscript equivalents, at the end of 2004 to approximately 26,400 full-time equivalents, of which 2,450 are full-time conscript equivalents, by the end of 2009. The personnel composition, etc., will be indicated in the annual appropriation act.

Reserve personnel will continue to be of great significance to Danish Defence’s task performance in relation to international missions, but also in relation to the training of Danish Defence units and total defence. As a result of the demobilisation of the mobilisation defence and affiliated structures, the quantitative need will decline and for this reason the number of reserve officers in the structure is to be adjusted during the accord period. 

It is generally agreed that the daily operation of Danish Defence must be streamlined and trimmed for actual assignments. Therefore, relevant efficiency engineering and adjustments of the organisation must be carried out at regular intervals to ensure ideal, relevant operational capacity. Large-scale structural reorganisation measures will be presented to the accord parties. 

There is also further agreement that the budget must be observed. Unforeseen expenditures arising during the period must be offset by the requisite adjustment of organisations, other activities or similar. Such adjustments must be incorporated in the annual appropriation bill, based on discussions with the accord parties. 

Detailed information on structural issues and the consumption of resources, including personnel, will be indicated in the annual appropriation act. The annual appropriation bill, as well as the acts that implement the budget, are to be discussed in advance with the accord parties. In addition, the agreeing parties are to be continuously informed on matters within the framework of this agreement that are of significance to the personnel structure and the acquisition of equipment. Moreover, a statement of activities, including deployments and redeployments, the financial situation of Danish Defence and on the implementation of the accord, especially on the developments af the functional services is to be prepared each year with a deadline of 1 January. The statement is to be sent to the Defence Committee of the Parliament and should lay the groundwork for a discussion between the agreeing parties. The purpose of the discussions is inter alia to consider necessary corrections to the development of the Danish Defence during the agreement period in order to ensure ideal relevance of Danish Defence and its capacities and to evaluate the coherence of the activities, efforts and economy of the Home Guard. 

The accord parties are to be informed of the participation of Danish Defence in international operations, including under the auspices of the UN, NATO and - in the event that Danish Defence opt-out is rescinded – the EU, whereby the parties will determine their position to this in conjunction with the relevant parliamentary discussions. 

It is generally agreed that the coordination of the military and civilian effort in international operations must be strengthened, to synergise the individual efforts and heighten the visible effect of the overall Danish effort. A working group, including Non-Governmental Organizations, under the chairmanship of the Danish Ministry of Foreign Affairs is to be established to draw up procedures for the cooperation between emergency agencies and the Danish Armed Forces. The result will be presented to and debated by the accord parties.

The “Act on the Aims, Tasks and Organisation, etc. of the Armed Forces,” the “Act on Danish Defence personnel”, the “Act on Conscription” and the “Home Guard Act” are to be amended in accordance with the present Danish Defence accord. 

A detailed consolidation of the accord’s individual projects will be implemented up to autumn 2004. The results will be presented to the accord parties to ensure the requisite structural and financial coherence, including an assessment of the possibilities within the financial framework to obtain additional operational capacities. 

The scope of the reorganisation of Danish Defence is such that substantial initial investment is required. It is estimated that this investment will amount to around DKK 1.5 billion, broken down as DKK 0.8 – 1.0 billion for buildings and refurbishment of buildings, and up to DKK 0.5 – 0.7 billion for personnel-related costs. A final account of the implementation expenditure will be prepared in conjunction with the consolidation of the accord during the course of 2004.

It is agreed that the implementation expenditure is to be kept within Danish Defence budget and that the reorganisation of Danish Defence must therefore be implemented over a period of time. The importance of the implementation funding not being obtained by making actual operating cutbacks is also agreed. This will affect the operational capacities of Danish Defence, including the ability to deploy these capacities in the short and long term, and that this would otherwise have a negative impact on Danish Defence personnel. It is also important that the international commitment, and the training carried out for this, including the participation in NATO’s Response Force, can be upheld, and that the support structures must be capable of functioning properly during the implementation period.

In the light of this, the parties agree that the implementation funding can be obtained by reducing the ordinary building and construction programmes and by delaying the employment of some of the permanent military staff until later in the accord period and using the saved wage sums for implementation expenditure. The parties also agree that Danish Defence – after the usual presentation to the appropriation authorities – may directly spend the revenue from the sale of properties resulting from the transfer of military authorities and units on the related investment expenditures or for acquiring properties for the relocating of the military authorities and units in question. The proceeds from the sale of Danish Defence properties are to be placed in Section 35, from which the above-mentioned expenditures are to be effected. Expenditures will also be effected from here for the new NATO headquarters.

It is estimated that the total personnel adjustments, including dismissals, resulting from the present agreement cannot be carried out solely by natural wastage. The job and training-consultant scheme for supporting the employment and training of discharged or dismissed personnel is to be continued. Personnel adjustments resulting from the structural modifications are to be implemented in accordance with previous practice in so far as retraining, supplementary training, etc. and withdrawal terms in general, including note no. 101 (Finance Act 2004) regarding access to acquire up to an additional 10-year pensionable age for personnel covered by the Civilian Worker Act. The affected personnel are to be offered other employment within Danish Defence system wherever possible.

Furthermore it is agreed that a working group under Defence Command Denmark is to be established to evaluate the beneficial arrangements for the personnel which have been a part of the Danish Defence Agreement 2000 – 2004 in order soonest possible and no later than 1 October 2004 to present proposals for further possible steps within the existing framework. The personnel organisations will be included in this work.
An implementation plan is to be drafted and presented to the group of accord parties. 

The defence budget for the accord period has been established on the assumption that the defence budget will be adjusted according to previous practice :

The defence budget (all the amounts are stated according to the 2004 price index).

To this should be added the transfer of the national emergency management agency, with affiliated budget (approximately DKK 450 million) to the sphere of the Minister of Defence as from 1 February 2004.

Danish Defence is to be fully compensated for the operation of the ice-breaking services and for any new acquisitions for this. 

An allocation of DKK 900 million p.a. of total defence budget for 2005 is earmarked for the participation of Danish armed forces in international operations. In addition, DKK 50 million is to be earmarked for international police readiness effort. The reserve totalling DKK 950 million is to be allocated to Section 35. General reserves may only be used following a decision by the Government and the Parliament. The reserve may only be activated for international operations. A less consumption of up to DKK 200 million can be carried forward to the subsequent fiscal year. If more than DKK 200 million are not spent in a fiscal year, the remainder will revert to the national treasury. In case of a possible excess consumption the Parliament will decide how to provide the necessary funding.

Investment in equipment is to be increased and targeted in relation to relevant, future operational capacities to an extent that assists in reducing the “technology gap” between Denmark and certain other allies. It should also be ensured that Denmark can live up to the commitment to participate in NATO’s capability initiatives, including strategic sea and air transport, air tanking, etc., stated by the Government during the NATO Summit in autumn 2002. Approximately DKK 2.845 billion is to be set aside each year for equipment investment and just as in the present accord period, there must be a general balance between payments and allocations for new projects throughout the accord period. The equipment debt at the end of 2009 will thus correspond to the debt at the end of 2004 of approximately DKK 6.7 billion (2004 price index). An equipment survey is enclosed.