After having been forced to sue for peace with Sweden in 1700, the Danish army was much larger than the kingdom could support. The king then decided to put almost half of the army under Allied command during the War of the Spanish Succession. Ten thousand soldiers served as an auxiliary corps to the Habsburg Monarchy, fighting under Eugene of Savoy in northern Italy, including the battles of Cremona and Luzzara. Later they participated in the suppression of the Hungarian insurgency.
The Swedish landing on Zealand forced Denmark out of the coalition that began the Great Nordic War. Through the peace of Travendal Denmark had to return Holstein-Gottorp to its duke, a Swedish ally, and to leave the anti-Swedish alliance. The large Danish army prepared for a major war against Sweden, became a major burden on the Danish economy, when it couldn't, as anticipated, live off the enemy's land. Downsizing the army was not possible, since the Danish king wanted to retain the option of going to war with Sweden at some future date, in order to regain the provinces lost in the treaty of Roskilde 1658. The Danish king therefore decided to make more than half of the Danish army's 35,000 soldiers, two-thirds of which were enlisted in Germany, available to the Allied powers during the War of the Spanish Succession. Political goodwill thus gained, could in addition be useful in any future war with Sweden and Holstein-Gottorp.
Eight thousand soldiers were made available to the Habsburg Monarchy through a defensive alliance between Denmark and the Holy Roman Empire. These troops were in 1701 garrisoned in Saxony, protecting the hereditary lands of August the Strong, who as king of Poland made war on Sweden, while his native Saxony technically was neutral. After the peace of Travendal this force were available for other duties. Another 2,000 soldiers were in 1703 recruited in Germany, and a Mecklenburg battalion in Danish service were transferred to Habsburg service. As compensation, Denmark would within six years receive the million rixdollars that the Habsburg emperor owed the Danish king since 1674. If a Habsburg prince would become king of Spain another million would be transferred to the Danish treasury.