The government is open to borrowing billions to finance the renovation of the Swedish defense.
This is stated by Finance Minister Elisabeth Svantesson (M) to TV4 News.
– It should be done first and foremost through priorities and increased growth, but it may also be needed that we borrow to get to the new levels, says Svantesson.
Geopolitical crises such as the war in Ukraine and the United States have reduced the ambition to defend Europe in the event of a crisis or war has accelerated defense grants around Europe.
The government is now opening in the short term to borrow for investments in the defense.
– It is very likely to be so, because the levels we are talking about and will certainly land in at the NATO meeting this summer are of the size that in the short term you will have to borrow, says Finance Minister Elisabeth Svantesson (M) to TV4 News.
Another 60-70 billion
The “levels” that Svantesson refers to is how much money, measured in the proportion of GDP, which the NATO countries put on the defense. Since 2014, the benchmark within the Defense Alliance has been 2 percent. During the NATO summit this summer, it is expected to be greatly increased to 3.5 percent.
“What we are now seeing is a great need to continue to build a strong defense, both in Sweden and in other European countries,” says Finance Minister Elisabeth Svantesson (M) to TV4 News.
Sweden is on its way to defense investments corresponding to 2.6 percent of GDP. In order to reach the new expected goal of 3.5 percent, Sweden needs to roughly invest SEK 60-70 billion on the defense-in addition to the around SEK 140 billion that are now being put on the defense per year.
“It can handle Sweden”
In just a month – in connection with the spring bill on April 15 – the government will present a plan for how the renovation is to be paid, but already you open for loans.
– It should be done first and foremost through priorities and increased growth, but we may also have to borrow to get to the new levels so that it does not push other things away, says Elisabeth Svantesson.
At the same time, she emphasizes that Sweden has room for loans.
– In the long term, it needs to be financed permanently, but in the short term you may need to borrow – and this can handle Sweden. My colleagues in Europe who have a government debt of up to 110 percent of GDP have it tougher.