Sweden Plans to Boost Defense Budget to 5% of GDP by 2035
Sweden commits to raising defense spending to 5% of GDP by 2035 after NATO summit agreements.
Key Points
- • NATO agrees to a 5% of GDP defense spending guideline by 2035.
- • Sweden's future defense budget projected at 319 billion kronor.
- • Current spending at 2.4% GDP reflects significant adjustments needed.
- • Discussions revealed differing views on achieving the target among member states.
In a significant policy shift during a NATO summit held in The Hague, leaders have formally agreed to increase defense spending to 5% of GDP by 2035, a marked departure from the previous guideline of 2%. For Sweden, this translates to a projected defense budget of approximately 319 billion kronor (around $32 billion) based on its 2024 GDP estimate of 6,393 billion kronor.
The allocation will break down into 3.5% dedicated to military expenses and 1.5% set aside for military-related investments, which encompasses civil defense and essential infrastructure improvements. Currently, Sweden's defense expenditure is at 2.4% of GDP, indicating a substantial increase is required to meet the new NATO target.
The agreement reflects rising security concerns among NATO members, particularly in light of recent geopolitical tensions. U.S. President Donald Trump has been an outspoken advocate of this increase, stating, “It’s big stuff. I’ve asked them to go to 5% for years.”
At the summit, Nordic and Baltic countries advocated for an accelerated timeline, aiming to reach the 5% target by 2030, recognizing Sweden's greater capability for military investments. However, varying capacities for military buildup were noted among member states, with some countries, including Spain, expressing concern regarding the feasibility of such a rapid increase. This highlights the complexity of defense commitments within NATO and the differing national priorities that influence these discussions.
As Sweden prepares to adjust its defense strategy, further discussions on financing and military capabilities are expected to continue among NATO allies. The country’s commitment to this new spending threshold signals a proactive approach to enhancing national and regional security amid evolving global threats.