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Sweden – The modernization of armed forces. A historic increase in military spending

cyber-defence Critical-communications technologies-and-equipment-for-the-production-of-secondary-materials defense Defense-related-Manufactures
Advisor

Taru Suojaranta

+46 73 261 6202
taru.suojaranta@businessfinland.fi
Geopolitical challenges in recent years have created the need to develop Sweden’s armed forces. The number of conscripts has plummeted since 2010, and there have been calls for modernization of both the armament and the civil defense system in order to ensure a functioning society under any circumstances.

In 2020, the Swedish parliament approved a government bill for a historic defense budget for 2021-2025. The budget increases are substantial and will increase annually. By 2025, the overall defense budget is estimated to be SEK 89 billion (EUR 8.66 billion).

The armed forces will grow from the current 55.000 positions to 90.000 by 2030 (an annual increase of 8.000 conscripts).

An upgrade of amphibious units and the creation of modern portable air defenses are examples of the planned procurements.

The purpose of this historic budget increase is to ensure a larger wartime organization, establish new training establishments and invest in modern defense material and infrastructure.

As well as the budget reserved for the armed forces, the Swedish government will also strengthen civil defense capacities, the foreign intelligence operations and the cyber defense capability.

These extensive increases to the budget as well as the close cooperation between the defense forces of Finland and Sweden will create new opportunities for Finnish companies that provide defense capabilities, especially in the field of land capabilities and in the C5ISTAR domain.