Investing.com -- Denmark announced on Monday its plans to allocate 14.6 billion Danish crowns ($2.05 billion) to enhance its military presence in the Arctic. This move comes in the wake of U.S. President Donald Trump's renewed interest in controlling Greenland, a semi-autonomous Danish territory.

The comprehensive political agreement includes the funding for the construction of three new Arctic navy vessels, the procurement of two additional long-range drones, and satellites to enhance surveillance capabilities, as stated by Defence Minister Troels Lund Poulsen during a press conference.

This development comes after a period of more than a decade where Denmark had significantly reduced its defence spending. However, last year, Denmark allocated a budget of 190 billion Danish crowns ($26 billion) for its military over the next decade, a portion of which is designated for Arctic operations.

The agreement presented on Monday earmarks a part of that budget for the Arctic region. The political parties have also agreed to negotiate additional funding for the military Arctic later this year.

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