This is reported by Reuters.
On June 19, the Swedish parliament made a significant decision to secure a loan of 300 billion Swedish kronor, equivalent to approximately 31 billion dollars. These funds will be used to finance the country’s rearmament program, which is part of Sweden’s commitments to NATO, aiming to increase defense spending to 3.5% of GDP by 2032.
According to Reuters, Russia’s invasion of Ukraine served as a catalyst for Sweden, prompting the country to reconsider its security policy and join NATO in 2024. Since 2022, Sweden’s defense spending has doubled, reaching about 2.4% of GDP. However, even more ambitious targets may be announced at the NATO summit scheduled for June 24-25 in The Hague.
Of the loan received, 250 billion Swedish kronor will be allocated for military needs, while 50 billion kronor will go toward the development of civil defense and infrastructure. Key priorities include expanding the army, strengthening air defense, and increasing ammunition reserves.
“We are doing this so that our children and grandchildren won’t have to learn Russian.”
As Reuters notes, Sweden’s national debt currently stands at about 32% of GDP, significantly lower than the EU average of 90%. Minister Svantesson emphasized that the additional defense funding will increase the national debt by approximately 3%.
Furthermore, Sweden will temporarily suspend adherence to strict fiscal rules, but plans to restore balanced public finances by 2035. This means future governments will have to either raise taxes or cut spending in other areas of the budget.
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