Sweden moves to ramp up defense spending by $1.3 billion in 2025

BELFAST — Sweden plans on increasing defense spending by 13 billion SEK ($1.3 billion) next year by adding a proposal for the new funds to its 2025 state budget. The uplift will take the Nordic nation’s annual military spending in 2025 to 138 billion SEK, equivalent to 2.4 percent GDP, which is above NATO’s minimum defense spending target.

Additionally, Stockholm is proposing a long term ramp up in spending, amounting to more than 170 SEK billion in extra funding between 2025-2030. The new pledge also includes a forecast of reaching 2.6 percent GDP spending on defense in 2028.

The latest commitments are in line with recommendations made in a Swedish Defence Commission report earlier this year, which advocated for “increased ambition” militarily, in light of Russia’s war in Ukraine and Stockholm’s entry to NATO.

In a statement today, the Swedish government was clear about the need for the spending plan.

“The security situation demands a stronger defence,” it said. “Russia’s war against Ukraine is a defining factor for security in Sweden’s neighbourhood. As the Budget Bill makes clear, the Government proposes significant resource increases to strengthen Sweden’s defence capabilities and enable extensive growth of the country’s total defence.”

Stockholm also added that as part of proposals for a total defense bill it plans on proposing “significant resource increases for the country’s armed forces between 2025-2035, “in accordance” with the Defence Commission’s report on strengthening national defense capabilities.

Sweden’s new statement did not single out any acquisitions that will receive new investment or service level modernization, but as Stockholm is set to honor the Commission’s guidance, changes on the way are likely to include the Swedish Army moving to three mechanized brigades and one infantry brigade by 2030; upscaling air defense capabilities to counter drones; and additional orders of air-to-air and cruise missiles.

In a series of posts related to the spending plan on X (formerly Twitter), Pål Jonson, Sweden’s defense minister, urged NATO-affiliated “European allies” to “assume a larger responsibility for Europe’s security.”

Sweden has already started contributing to the alliance, and subject to parliamentary approval, noted today’s statement, will also play a role in future alliance air surveillance missions and add to standing maritime forces.

Improvements to funding for Ukraine will also see a new “framework” established for 2024-2026, with total military aid for Kyiv pushed to  25 billion SEK per year.

Meanwhile, Jonson said that the Swedish government is “adding funds” to the Swedish Defence Research Agency so the organization can look further into disruptive technologies. He further stated that the total defense bill will be presented to parliament “next month.”

Bloomberg reported Monday that Sweden had agreed to lead a new NATO base for forward land forces in Finland in partnership with its Nordic neighbor. The location of the base was not disclosed by Stockholm or Helsinki.