Sweden has announced a historic SEK 300 billion (approx. €26 billion) investment in military and civil defense, marking the country’s most significant defense initiative since joining NATO. All eight parliamentary parties have endorsed the agreement, which will be financed primarily through state loans and implemented over several years.
Broad political consensus on defense spending
According to Defense Minister Pål Jonson (Moderate Party), the agreement represents “a broad and long-term political deal” aimed at significantly strengthening Sweden’s defense capabilities. This consensus is considered exceptional by international standards and signals a firm national stance on security in light of growing geopolitical tensions in Europe.
The investment supports Sweden’s goal of meeting NATO’s expected targets: 3.5% of GDP for military defense and 1.5% for civil defense. These targets are set to be formalized at the upcoming NATO summit in The Hague.
Allocation of funds: military and civil priorities
Of the SEK 300 billion, SEK 250 billion (approx. €21.7 billion) will be allocated to military defense. This includes expanding ground combat forces, strengthening air defense, and increasing ammunition stocks. The reform also aims to enhance long-range strike capabilities and expand conscript training.
The remaining SEK 50 billion (approx. €4.3 billion) will be directed to civil defense, focusing on infrastructure, emergency medical care, and preparedness reserves for food, fuel, and medicine.
Temporary deviation from fiscal balance
Finance Minister Elisabeth Svantesson (Moderate Party) acknowledged that the plan requires deviating from Sweden’s fiscal balance target. While the increase in spending is temporary, many of the expenses are structural and long-term.
“We will protect our country and build defense capabilities with others,” said Svantesson. “At the bottom, it’s also about our children and grandchildren not having to learn to speak Russian.”
The government plans to return to fiscal balance by 2035, although the national debt is expected to rise by approximately 3 percentage points.
Disagreement on long-term financing
Despite cross-party support for the investment, there is no consensus on how to fund it long-term. The Social Democrats have proposed a preparedness tax, while the governing parties advocate for gradual integration into the regular budget, relying on economic growth.
The deal reinforces a prior defense decision adopted by the Riksdag in 2024, and strengthens Sweden’s role within NATO. Mikael Damberg, economic spokesperson for the Social Democrats, called the agreement “a victory for Sweden” and “a strong security policy signal, not least to Russia.”
Strategic context within NATO
This move aligns Sweden with broader NATO goals amid heightened tensions with Russia. While Sweden moves towards the 3.5% defense spending benchmark, many NATO member states still fall short of the existing 2% threshold. The Swedish initiative is likely to be presented as a model of commitment at the upcoming summit.
