Sweden has announced a significant increase in its defense spending, aiming to raise it to 3.5% of its GDP by 2030. This ambitious plan, described by Prime Minister Ulf Kristersson as the country's largest rearmament since the Cold War, involves investing approximately 300 billion Swedish kronor (about $30 billion) over the next decade.
The move is part of a broader effort to strengthen Sweden's and Europe's defense capabilities, particularly in response to heightened security threats from Russia's ongoing conflict in Ukraine.
Sweden's decision to boost its military budget reflects a shift from its historical stance of military non-alignment. The country officially joined NATO in March 2024, marking a significant departure from its two-century-long neutrality. This change was prompted by Russia's invasion of Ukraine, which has led to a reevaluation of security priorities across Europe.
The increased defense spending will be financed through loans, a departure from previous budgetary practices.
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Kristersson emphasized that the current security landscape necessitates urgent and long-term decisions, highlighting the need for European NATO members to take significant steps in enhancing their defense capabilities. Sweden has already allocated funds to reach a defense spending level of 2.6% of GDP by 2026, exceeding NATO's recommended 2% target.
In addition to bolstering its military, Sweden is also increasing its financial support for Ukraine. The budget allocation for Ukraine's defense against Russian aggression is set to rise by 40 billion Swedish kronor ($4 billion) in 2025, reflecting Sweden's commitment to supporting Kyiv in the ongoing conflict.
As Sweden embarks on this major rearmament initiative, it is positioning itself to play a more significant role in European defense. The move is seen as a response to the evolving geopolitical landscape and the need for European nations to assume greater responsibility for their security in the face of uncertainty about U.S. involvement in the region.