Denmark’s Defense Minister steps down following Elbit deal

Denmark’s Defense Minister Jakob Ellemann-Jensen unexpectedly resigned this week and was appointed to the more junior position of Minister of Economy in a cabinet reshuffle by Prime Minister Mette Frederiksen.

Elleman-Jensen has been at the center of several media and security affairs over the past year including a controversy over a $250 million procurement from Israeli defense electronics company Elbit Systems Ltd. (Nasdaq: ESLT; TASE:ESLT). In February, he took indefinite leave due to “burnout” caused by the job, resuming his position as Minister of Defense on August 1.

During his six month leave of absence Economy Minister Troels Lund Poulsen from Ellemann-Jensen’s party served as acting Defense Minister. Poulsen is credited with “engineering” the future deal in which Denmark (together with the Netherlands) will deliver US fighter jets to Ukraine, after pilot training and other training. The deal has been approved by Washington.

The cabinet reshuffle follows an affair that has hit the Danish Ministry of Defense in recent weeks, in which the permanent secretary of state in the ministry resigned, after presenting incorrect information about artillery arms systems procurement from Elbit Systems. In January 2023, the minister urged the security committee of the Danish parliament to swiftly approve a deal worth about $250 million for the purchase of Elbit’s ATMOS artillery pieces, and PULS rocket launchers.

The permanent secretary of state in the ministry who was forced to resign presented the committee with data in which the Israeli price offered was only valid until the end of January, while it was actually valid until the end of June, similar to the offers of rival companies. Also, the minister hinted that the Israeli company would deliver the weapons faster than competing companies from France and South Korea, although the rivals later clarified that they could have met the time frame set for Elbit, which won the contract.

Published by Globes, Israel business news – en.globes.co.il – on August 24, 2023.

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