Sweden’s parliamentary parties have unanimously reached a groundbreaking deal to fast-track a defence spending boost, allocating billions in loans to rapidly strengthen the military and civil defence ahead of next week’s NATO summit.
Swedish Defense Minister Pål Jonson hailed the €28.5 billion (SEK 300 billion) war chest agreed on Thursday as “near-unique internationally,” highlighting plans to enhance conscript training, air defences, and long-range combat capabilities.
The agreement between all eight parties represented in the Swedish Riksdag also allocates €4.75 billion (SEK 50 billion) to civil defence. The aim is to reinforce infrastructure and stockpile food, medicine and fuel, with the ultimate goal of meeting NATO’s 2030 target.
The announcement comes shortly before the NATO summit in The Hague next week, where leaders are expected to agree to raise the spending target to 5% of GDP. That will be split between 3.5% for direct defence spending and 1.5% for broader defence-related investments, such as infrastructure and cybersecurity.
Finance Minister Elisabeth Svantesson underscored the stakes, declaring that it is about ensuring that “our children and grandchildren won’t have to learn Russian.”
While the planned loan should raise state debt by 3%, fiscal balance is targeted for 2035. So far, Sweden has not requested activation of the National Escape Clause, which would allow them to increase their national debt for defence purposes, exempting it from debt calculations.
Long-term financing remains contentious as opposition Social Democrats advocate a preparedness tax, dismissed by centre-right Prime Minister Ulf Kristersson. Social Democrat Mikael Damberg, who sits in the opposition, nevertheless hailed the deal as “a victory for Sweden,” and a clear message sent to Russia.
In March, Prime Minister Ulf Kristersson already announced that Sweden aimed to increase defence spending to 3.5% of GDP by 2030.
Sweden joined NATO last year after two years of lengthy negotiations, breaking with 200 years of tradition of military non-alignment.
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