Sweden targets $30B increase in defense spending, to hit 3.5% of GDP by 2030

STOCKHOLM — Sweden is planning a jump in defense spending to 3.5 percent of its GDP, in line with what the nation’s prime minister expects will be a new NATO-wide spending target.

Ulf Kristersson said a press briefing today that his “qualified guess” is that NATO would set the 3.5 percent target at the alliance’s summit in July. Sweden is already planning to hit that mark “within five years,” he said.

Stockholm’s move, however, comes at a steep cost of 300 billion SEK ($30 billion), which the country plans to borrow if the proposal is approved by parliament. The legislation will be presented on April 15 and voted on by June 20, a government spokesperson told Breaking Defense. 

Sweden’s current defense spending stands at 2.4 percent of GDP — already above NATO’s 2 percent target — with plans to increase it to 2.6 percent by 2028. While the ruling Moderate Party has a coalition with the Sweden Democrats in parliament, they intend to seek broad support for the initiative.

Kristersson was candid about his motivations, acknowledging that the increase is partly aimed at maintaining strong relations with the United States.

“I don’t want us to act in a way that undermines the possibility of transatlantic cooperation. But we also cannot assume or take for granted that the United States will continue to act in Europe as it has over the past 80 years,” he said, adding some statements and moves from the Trump administration are ”quite difficult for us in Europe to understand right now.”

“This would represent a significant strengthening of the European NATO. Let’s not forget that it’s the European NATO that’s being tested right now,” Kristersson said.

It’s too early to specify how the funds will be allocated, though slides presented by Kristersson today included drones, air defense systems, and ammunition. “It will be about NATO’s capability needs — what NATO demands. For Sweden, much of this revolves around the Baltic Sea,” he explained.

Additionally, the approved financial framework for military support to Ukraine will rise from 25 billion SEK to just over 40 billion SEK in 2025, achieved by bringing forward investments originally planned for 2026. The government will revisit the Ukraine funding framework for 2026 at a later date.

Since Russia’s invasion of Ukraine, Sweden’s military support to Ukraine totals approximately 61.9 billion SEK as of January 30, 2025, delivered through 18 aid packages, according to the government’s fact sheet.