Sweden will lift military outlays by €2.4 billion to accelerate NATO commitments amid heightened tensions on the alliance’s eastern flank.

The centre-right coalition in Stockholm framed the increase against recent Russian drone incursions over Poland and Romania, additional allied deployments to the region, and combat activity from Russia’s Kaliningrad during the Zapad exercises. Sweden’s energy minister, Ebba Busch, said the authorities must be ready to counter such threats.

Prime Minister Ulf Kristersson said the package, worth SEK 26.6 billion, represents an 18% rise from roughly €13 billion this year and is Sweden’s largest defence boost since the Cold War. It includes an extra €430.9 million for equipment and infrastructure spanning air defence systems, rocket artillery, ammunition, combat vehicles, new combat ships and tactical transport aircraft.

The move builds on a unanimous cross‑party agreement in June to borrow €27.5 billion (SEK 300 billion) to expand conscript training, strengthen air defences and develop long-range strike capabilities. It comes as neighbours also step up, with Denmark last week announcing a €7.7 billion purchase of European-made ground-based air and missile systems.

Stockholm aims to move towards NATO’s revised goal of 3.5% of GDP by 2035, projecting defence spending at 2.8% in 2026 and 3.1% in 2028, compared with the alliance-wide estimate of 2.14% for 2024. The government will submit its budget bill on 22 September.

Source: Euractiv