Sweden's Bold Defense Boost: A New Era of Security

Sweden plans to significantly increase its defense budget to 3.5% of GDP by 2030, responding to NATO's anticipated spending targets and European security concerns. This marks the country's largest military investment since the Cold War, aiming to strengthen its defense capabilities.

Sweden is set to ramp up its defense spending to an estimated 3.5% of GDP by 2030, a substantial increase over its current levels, announced Prime Minister Ulf Kristersson on Wednesday. This move marks the most significant rearmament for Sweden since the Cold War.

The current defense spending is projected at 2.4% for this year, with an earlier target of 2.6% by 2028. However, in light of U.S. advisories suggesting that European security can no longer rely heavily on Washington, Sweden's government anticipates NATO will soon establish a spending goal of 3% to 4% of GDP, prompting this increase.

Sweden, with a relatively low public debt, is in a favorable position to enhance its military budget. The government, alongside the Sweden Democrats, is set to finance this defense boost through loans worth 300 billion Swedish crowns over the next decade and a half, thus reinforcing its military infrastructure substantially.

(With inputs from agencies.)