Sweden to boost defense spending to record levels – first time since Cold War

Sweden’s prime minister said a new draft law provides for an 18% increase in defense spending, from €13 billion this year.

"It’s unprecedented unless you go back to the very worst days of the Cold War," Kristersson told the press.

The proposal includes an additional €430.9 million for the procurement of:

• air defense systems;

• rocket artillery;

• ammunition;

• combat vehicles;

• new warships;

• tactical transport aircraft.

The spending increase is based on a unanimous agreement among parliamentary parties in June to take a €27.5 billion loan (300 billion Swedish kronor) to strengthen conscript training, air defense, and long-range strike capabilities.

"We need to be ready, we need to have a good ability to face this," Energy Minister Ebba Busch said, referring to drone activity over Poland and Romania.

With the new investments, Sweden aims to reach NATO’s updated goal of spending 3.5% of GDP on defense by 2035. The government in Stockholm projects defense expenditure will rise to 2.8% of GDP in 2026 and 3.1% in 2028, compared to NATO’s current estimate of 2.14% in 2024.

The coalition government is set to present its budget bill on September 22.

Russian threat

The announcement comes after Russian drones violated NATO’s eastern flank airspace on September 10. The incident was seen as a deliberate provocation against the backdrop of Russia’s Zapad drills in Belarus.

NATO has since begun deploying additional forces in the region, while Sweden sent aircraft and air defense systems to Poland.

Sweden will also provide Ukraine with military aid worth 70 billion kronor over the next two years.