The Swedish government announced on Wednesday that it will increase its defence spending by 300 billion kronor (about €28 billion) over the next decade.
This investment, financed by loans, marks “the most significant rearmament since the Cold War,” Prime Minister Ulf Kristersson said at a press conference.
“The security situation is entirely new, and uncertainties will remain high for a long time,” he added.
The goal is to reach 3.5% of GDP by 2030, up from the current 2.4%.
Sweden has already allocated funds for defence spending to reach 2.6% of GDP by 2026, well above the 2% recommended by NATO but, Kristersson stressed, "that’s not enough.”
“We believe that NATO, especially its European members, must take significant steps in the coming years,” he argued, noting the waning certainty of Washington’s support for its European allies since Donald Trump became President.
By joining NATO in March 2024 in response to Russia’s invasion of Ukraine, Sweden has ended 200 years of military non-alignment. In January, the Prime Minister stated that his country was “not at war, but not at peace either,” highlighting the need to strengthen national defence.
Regarding hybrid attacks in the region, he added: “The Russian threat is likely long-term. Our defence must be as well.”
While previous increases in defence spending were financed by the ordinary budget, Kristersson noted that to rearm so quickly, it will be necessary to “borrow” funds during a “transition period.”
