The Danish government has announced plans to bolster its military by setting up a 50 billion-kroner ($7 billion) fund that it says will raise the country’s defense spending to more than 3% of gross domestic product this year and next.

Denmark will boost its defense spending to more than 3% of economic output as the nation seeks to counter an escalation in security threats from Russia.

A mood of panic is spreading across Europe after the dramatic foreign policy shift in Washington. Several Nordic countries today reacted - and took action: Denmark announced an increase in military spending to 3 percent of its GDP over the next two years,