In a significant move to strengthen its defence capabilities and meet NATO's new spending targets, the Swedish Government has unveiled an agreement with cross-party opposition parties to embark on a historic rearmament. The plan, which aims to increase Sweden's defence spending to 3.5% of GDP by 2027, is expected to make the country and its allies safer.
The agreement was announced today in Stockholm, as the Swedish Government and opposition parties – including the Social Democratic Party, the Sweden Democrats, the Left Party, the Centre Party, and the Green Party – presented their joint proposal for the fiscal policy framework. The plan will be financed through temporary loans, which will allow the government to deviate from its target for general government net lending during the period 2026-2034.
The loan financing will not exceed a maximum indebtedness increase of SEK 300 billion, with a maximum of SEK 50 billion allocated for civil defence investments. This will enable the government to invest in new military defence expenditures, civil defence measures, and support to Ukraine.
According to Minister for Defence Pål Jonson, "This agreement paves the way for a historic rearmament of our defence that will make Sweden and NATO safer." Minister for Finance Elisabeth Svantesson added, "Our foremost task is ensuring the safety and security of the Swedish people. This historic defence rearmament is the biggest commitment we are making for the coming electoral period."
The plan outlines several key areas of focus for the defence build-up, including:
Increasing combat readiness needs
Extensive investment in personnel, materiel, supplies, and infrastructure
Focus on fighting units
Special priorities in the short and medium term
Increased pace of rearmament of civil defence
Continued work on research and development
By the end of 2030 at the latest, a new assessment of the security situation will be made, and a path for a return to balanced general government net lending by 2035 at the latest will be presented.
This historic agreement marks a significant shift in Sweden's defence policy, as the country seeks to strengthen its capabilities and contribute to NATO's efforts to address emerging security threats.