Cross-party agreement on historic rearmament

The Government and the opposition parties have agreed the following with respect to the fiscal policy framework:

• In the Budget Bill for 2026, the Government will propose that the target for general government net lending will be a balance target from 2027 onwards, in accordance with the proposal by the Parliamentary Balance Target Commission (SOU 2024:76). 
• The need for new defence expenditures, including support to Ukraine, will be temporarily financed by loans. This will be handled by allowing the general government net lending to temporarily deviate from its target 2026–2034. 
• The deviation for military and civil defence will entail a maximum indebtedness increase of SEK 300 billion.
• A maximum of SEK 50 billion of this may be used for investments in physical infrastructure and stockpiling of food, medicines and fuel as part of the civil defence.
• Support to Ukraine is not included in the ceiling of SEK 300 billion.
• The debt anchor should remain unchanged at 35 per cent of GDP, in accordance with the Parliamentary Commission’s proposal (SOU 2024:76).
• General government net lending must be balanced by 2035 at the latest. This will require the introduction of successive financing measures.
• By the end of 2030 at the latest, a new assessment of the security situation will be made and a path for a return to balanced general government net lending by 2035 at the latest will be presented.

Sweden’s defence appropriations have doubled in just a few years, and will continue to increase significantly in the next electoral period. But given the exceptional security situation we currently find ourselves in, we need to do more, and quickly. The Government has therefore come to an agreement with the Social Democratic Party, the Sweden Democrats, the Left Party, the Centre Party and the Green Party on a number of starting points for how rearmament will be financed within the fiscal policy framework, whereby defence rearmament will initially be financed through loans by allowing a deviation from the target for general government net lending during the period 2026–2034. The deviation will apply to all new military defence expenditures, those that exceed the approved levels in the defence policy bill from late last year, civil defence expenditures in the form of additional investments in infrastructure for defence purposes, investments in stockpiling of food, medicines and fuel, and continued support to Ukraine. 

The loan financing may only lead to a maximum indebtedness increase of SEK 300 billion, of which a maximum of SEK 50 billion can go towards civil defence investments. Decisions on investments will be made based on total defence needs.

The possibility of the exceptional use of loan financing for Sweden’s defence applies in the short term – all of the parties agree that defence spending entails permanent expenditure and thus requires permanent financing solutions. For this reason, long-term financing will be introduced successively so that the general government net lending is balanced by 2035. To maintain healthy public finances and low and sustainable debt, we also agreed that the debt anchor should remain at 35 per cent of GDP. 

“This agreement paves the way for a historic rearmament of our defence that will make Sweden and NATO safer. Now everyone involved, from the Government to the defence agencies and total defence actors, must do everything they can to accelerate rearmament in the coming years,” says Minister for Defence Pål Jonson.

“Our foremost task is ensuring the safety and security of the Swedish people. This historic defence rearmament is the biggest commitment we are making for the coming electoral period. Given the exceptional security situation we currently find ourselves in, we need to do more, and quickly. It is an incredible strength that all of the parties in the Riksdag are in agreement on the need to rapidly rearm our defence and strengthen Sweden’s security,” says Minister for Finance Elisabeth Svantesson.

The Government and the opposition parties have agreed on the following starting points to accelerate and increase defence build-up: 

Combat readiness needs to increase

The Swedish Armed Forces’ ability to fulfil its tasks nationally and within the framework of collective defence needs to be strengthened based on current and future operational planning as well as the capability targets assigned to Sweden as an Ally. The combat readiness of the organisation set out in the 2024 Defence Resolution must increase.

Extensive investment needs 

There is a significant need for investment in personnel, materiel, supplies and infrastructure, in existing, planned and newly added parts of the war organisation alike. To achieve this, Sweden’s defence industrial production capacity needs to increase. These efforts must reflect experiences from warfare in Ukraine.

Focus on fighting units

Training and exercises for conscripted and employed personnel need to increase. Materiel for capabilities that are currently lacking or under-dimensioned needs to be procured and organised into fighting units. Increasing the combat readiness and resilience of fighting units by ensuring they are fully staffed and equipped, including reserves, will be a top priority in the next few years.    

Special priorities in the short and medium term

For areas that are especially prioritised in the 2024 Defence Resolution and that also contribute to meeting NATO’s capability targets, measures will be brought forward and supplemented; these include strengthening various types of air defence, increased operational availability of combat aircraft systems, enhanced ground combat capability and long-range engagement capability. The procurement of spare parts and ammunition must increase significantly for all branches and functions of the defence, as must workshop capacity, stockpiling and access to wartime-essential logistics services. 

Increased pace of rearmament of civil defence

The civil defence should ensure vital societal functions, contribute to military defence capabilities, protect the civilian population and maintain Sweden’s will to defend itself and society’s resilience to external pressure. 

Research and development 

The ability to rapidly convert R&D results into defence innovations is of fundamental importance to defence capability. Investments in this area should primarily strengthen research and research environments for the benefit of military defence, but research that contributes to the development of civil defence, as well as other relevant advanced technologies with dual-use applications, should also be promoted. Within certain key areas of space capability, Sweden has a national interest in maintaining independent control over its resources.

Continued work

In the second half of 2025, the Government intends to resume talks on defence policy with representatives of the Riksdag parties, with the aim of enabling broad parliamentary support and facilitating forthcoming consideration by the Riksdag. 

In the Budget Bill for 2026, the Government will propose a balance target to apply from 2027 as well as provide a description of how the additional expenditures on defence and support to Ukraine will be managed in relation to the balance target.

By the end of 2030 at the latest, a new assessment of the security situation will be made and a path for a return to balanced general government net lending by 2035 at the latest will be presented.