In a move to strengthen its military defence capabilities and counter hybrid threats, the Swedish government has unveiled a comprehensive package worth SEK 25 billion (€2.3 billion) in the Spring Amending Budget. The proposals aim to increase Sweden’s contribution to NATO spending from 1.8% of GDP to meet the new target of 3-4%, while also bolstering support for Ukraine amid Russia’s aggression.
The government has agreed with the Sweden Democrats on a funding model to ensure that Sweden can borrow funds during a transitional period to pay for new military expenditures without compromising welfare needs or internal security investments. This loan-financed defence investment is projected to total SEK 300 billion by 2034 if Sweden’s defence expenditures reach 3.5% of GDP by 2030.
To enhance its military capabilities, the government proposes enabling purchases of new defence materiel worth SEK 25 billion from 2025, for delivery in 2026-2028. This includes essential equipment such as air defence systems, drones, rocket artillery, personal protective equipment, and ammunition. To address potential uncertainties regarding the appropriation for defence materiel during this period, the government intends to allow relevant government agencies to utilize appropriation savings for opportune purchases.
The security situation has brought an increased risk of hybrid threats and activities, prompting the government to propose a SEK 96 million package to strengthen measures to counter these threats. This includes allocating SEK 50 million to the Swedish Coast Guard to enhance its operational capability for maritime surveillance and collaboration, as well as SEK 20 million to the Swedish Civil Contingencies Agency to support its work within EU satellite navigation systems.
The government also intends to allocate a total of SEK 12 million to the Swedish Civil Contingencies Agency and the Psychological Defence Agency to counter hybrid threats. This includes SEK 9 million for the Swedish Civil Contingencies Agency’s rapid reaction force, SEK 3 million for the Psychological Defence Agency’s work on countering foreign malign information influence, and SEK 7 million each to support research and innovation in cybersecurity and strengthen space security.
The proposals are part of an agreement between the Government and the Sweden Democrats, and were unveiled at a press conference on March 26 with Prime Minister Ulf Kristersson, Minister for Energy, Business and Industry Ebba Busch, and Minister for Education Johan Pehrson. The government’s plans aim to bolster Sweden’s military defence capabilities while addressing emerging security challenges.
Significance of the Plan
The Swedish government’s plan to bolster its military defence capabilities and counter hybrid threats marks a significant development in the country’s foreign policy efforts. By increasing its contribution to NATO spending and bolstering support for Ukraine, Sweden aims to demonstrate its commitment to regional and global security. The plan also underscores the government’s recognition of emerging security challenges, including hybrid threats and cyber activities.
While details are still emerging, the Swedish government’s plan is expected to have significant implications for the country’s military defence capabilities and its role in addressing emerging security challenges. As NATO agrees on a new defence spending target, Sweden’s funding model will play a crucial role in ensuring that the country can meet this target while also prioritizing welfare needs and internal security investments.
Key Dates
March 26: The Swedish government presents its Spring Amending Budget proposals at a press conference
2025: Sweden increases support to Ukraine under the ‘Ukraine framework’
2030: Sweden’s defence expenditures reach 3.5% of GDP, enabling loan-financed defence investment totalling SEK 300 billion by 2034
Ministerial Updates
Since June 28, 2025, Minister for Education Johan Pehrson is no longer a government minister.
Between September 10, 2024, and June 28, 2025, he was Minister for Education. Between October 18, 2022, and September 10, 2024, he was Minister for Employment and Integration.