As the European Union contends with internal fragmentation and rising global uncertainty, Denmark has assumed the EU Council Presidency with a slogan that reflects both ambition and urgency: “A strong Europe in a changing world.” In a special episode of CEA Talk, Szilárd Szelpál spoke with Otto Brøns-Petersen, Director of Analysis at CEPOS and one of Denmark’s most influential economic voices, to unpack the deeper motivations and policy visions behind this presidency—and what it means for Europe’s political and economic trajectory.
Author: Szilvia Kecsmar
The Danish presidency, Brøns-Petersen explains, is not seeking to radically rewrite Europe’s playbook. Rather, it is committed to completing deals, pushing pragmatic integration where it matters, and acting as a stabilising force amid widening divides—from climate targets to defense cooperation and EU enlargement.
The Core Priorities: Green, Secure, Competitive
Denmark has identified three central pillars for its presidency: strengthening European defense capabilities, driving competitiveness, and advancing the green transition. These priorities are not without friction.
“The challenge,” Brøns-Petersen notes, “is how to balance industrial competitiveness with an ambitious green agenda—especially as the green transition slows, and member states become more cautious about its economic cost.” The Danish position is clear: to succeed, green energy must be affordable, scalable, and a tool for enhancing—not weakening—Europe’s industrial base.
He argues for aligning decarbonisation goals with economic logic, favoring market-based instruments like the EU Emissions Trading System (ETS) over what he calls “double regulation” that inflates costs with little added benefit. His concern is that overly symbolic or rigid targets—like the proposed 90% emissions cut by 2040—may undercut both industrial competitiveness and public support.
Enlargement, Sovereignty, and a Fragmented Europe
Denmark’s role in shaping the 2004 EU enlargement still casts a long shadow. This presidency is once again leaning into its history of deal-making to push forward accession talks with Ukraine, Moldova, and the Western Balkans.
But the path is fraught. Hungary’s persistent veto threats—particularly against Ukraine—risk stalling progress. While Brøns-Petersen downplays the likelihood of invoking Article 7 against Hungary, he acknowledges the tension: “The Danish presidency will likely pursue a pragmatic solution—one that avoids deepening divides within the Union while still maintaining pressure for compliance.”
This hints at Denmark’s broader instinct: a quiet preference for subsidiarity, flexibility, and voluntary coalitions of the willing—an approach reminiscent of the dual monarchy model of Austria-Hungary, where core policies like defense and finance were centralized, but most others were delegated to national levels.
Defense, NATO, and Strategic Autonomy
In light of geopolitical instability, Denmark—once skeptical of EU defense integration—is now a full participant in joint defense efforts, having removed its opt-out in 2022. Still, Copenhagen remains NATO-centric.
“Trump’s policies made us realise the EU may need to stand more independently,” says Brøns-Petersen. Yet he stops short of endorsing an EU army, preferring stronger defense industry coordination and deeper spending commitments among member states.
Ultimately, defense begins with economics: “If Europe wants to be strong, it needs strong economies,” he states. Without fixing the eurozone’s fiscal imbalances and competitiveness gaps, strategic autonomy will remain rhetorical.
Innovation and Capital Market Integration
Europe’s startup ecosystem still lags behind the U.S., and Denmark wants to fix that. Brøns-Petersen highlights regulatory burdens and capital market fragmentation as major barriers for innovation. With 27 separate financial systems and limited investor mobility, startups are starved of scale and financing.
One low-hanging fruit? Ending withholding tax complications across borders to free up investment flow. Yet deeper integration remains politically sensitive. While Denmark is unlikely to champion a European IRS, it may support moves that improve transparency, competition, and deregulation.
Greenland and Strategic Geography
A surprising moment in the conversation turned to Greenland—an autonomous part of the Danish Kingdom often overlooked in Brussels. Since Trump’s 2019 bid to “buy” Greenland, its strategic relevance has risen sharply.
Could it rejoin the EU? Unlikely, Brøns-Petersen says. But there’s a strong case for Brussels to develop more active engagement with Greenland—especially as China, Russia, and the U.S. eye its vast mineral reserves. Currently, the U.S. is effectively in charge of Greenland’s defense through Cold War-era treaties. The question now is whether the EU should develop its own geopolitical posture in the Arctic.
Conclusion: Quiet Leadership in a Loud World
The Danish presidency is not seeking headlines. Instead, it’s aiming for deliverables: a push toward feasible climate goals, smart deregulation, revitalised competitiveness, and a balanced approach to enlargement and sovereignty.
As Brøns-Petersen concludes, “It’s about finding compromise—solutions that work for 27 very different countries in a world that’s rapidly shifting.”
And in a moment where so much of Europe feels stuck between over-centralisation and chaos, Denmark’s modest, measured presidency might be exactly the kind of leadership the Union needs.
For more insights on Central European political risk, EU institutional developments, and transatlantic relations, follow CEA Magazine and the CEA Talk podcast.
Cover photo credit: Envato
The article was made possible by Prosum Foundation, with the support of an Atlas Network grant, within the framework of the Re:Hungary project.
Szilvia Kecsmar is a writer, journalist, and media informatics specialist, serving as the editor-in-chief of CEA Magazine.
