Swedish government announces large increase in defence spending

Copenhagen (dpa) – Sweden is to spend an additional 300 billion krona ($30 billion) on defence over the next 10 years, Prime Minister Ulf Kristersson told a press conference in Stockholm on Wednesday.

The additional spending will be funded by borrowing and boost the defence budget to 3.5% of annual economic output by 2030, up from the current 2.4%, he said.

The government had agreed this with the right-wing populist Sweden Democrats, which supports the government through an informal alliance, according to Kristersson.

The spending boost is the largest since the Cold War and a response to the full-scale Russian invasion of Ukraine, which created a completely new security situation, he said.

Kristersson also noted uncertainties in trans-Atlantic relations following the election of President Donald Trump and said these would remain for a long time.

After years of neutrality, Sweden joined the Western defence alliance NATO in March 2024.