Prime Minister of Sweden Ulf Kristersson
Stockholm is significantly increasing defence spending, planning to reach 3.5% of GDP by 2030. It will be financed through loans, which underscores the strategic importance of security in the new geopolitical realities.
Large-scale re-equipment
Sweden has announced a record increase in its defence budget by SEK 300 billion (about €28 billion) over the next decade. This was announced by Prime Minister Ulf Kristersson during a press conference, calling the move “the biggest defence reorganisation since the Cold War”.
“The security situation has changed dramatically, and the threat level will remain high for a long time,” said Kristersson.
The main goal of the new defence programme is to increase military spending to 3.5% of GDP by 2030 (compared to the current 2.4%). By 2026, the army’s budget is expected to increase to 2.6% of GDP, which is well above the NATO minimum of 2%.
The NATO factor and the new security strategy
The decision to significantly increase its military capabilities was made against the backdrop of an unstable international situation, as well as after Sweden’s official accession to NATO in March 2024. This was a historic end to the country’s 200-year period of military neutrality, provoked by Russia’s full-scale aggression against Ukraine.
Kristersson also noted that the future of European security can no longer depend on the United States alone:
“We believe that NATO Allies, especially European Allies, need to take serious steps in the coming years.”
This is a direct response to the uncertainty about Washington’s position after Donald Trump’s return to power, which could affect the level of US military support for Europe.
Funding and challenges
Unlike previous phases of military spending, which were financed from the state budget, the new rearmament will be carried out through state loans.
“In order to implement this plan in a short time, we need to attract additional resources for the transition period,” Kristersson explained.
Sweden has already stepped up the modernisation of its army and defence systems, in particular through increased military exercises and the purchase of the latest weapons.
Hybrid threats and long-term prospects
Kristersson has previously stated that Sweden is “not at war, but not at peace”, citing hybrid threats in the region and possible long-term risks from Russia.
“The Russian threat will be long-lasting. This is exactly what our defence strategy should be,” the Prime Minister stressed.
The increase in Swedish defence spending is part of a global trend of militarisation in Europe amid the Kremlin’s aggressive foreign policy.
