Land Platforms

Sweden raises defence spending, financed by bank tax

03 September 2019

The Swedish government plans to increase defence spending by SEK5 billion (USD509 million) a year in 2022–25, financed by a bank tax, the finance and defence ministries announced in a press release on 31 August. This is in line with Sweden’s cross-party defence committee’s white paper presented on 14 May, which called for defence investment resulting in spending being increased to SEK84 billion or 1.5% of GDP by 2025.

The announcement follows agreement the day before between the Social Democratic-Green government and the Centre and Liberal parties that support it in parliament.

The finance and defence ministries said the government would announce the exact form the bank tax will take at a later point. They added that the defence committee’s proposals should be implemented in their entirety.

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