Already next week, Finance Minister Elisabeth Svantesson (M) expects the first concrete proposals from the EU Commission's fresh defense plan to be presented.
At the same time, there are demands to go even further and borrow even more money in pure grants to EU countries. But that is not acceptable to Sweden.
When it comes to joint borrowing, we are very clear: it's about borrowing to borrowing, not borrowing to grants, says Svantesson in Brussels on Tuesday.
There are other countries that would like to see borrowing to grants and also want to expand it so that it's not just military expenditures, but a broader perspective. I think it's important for us to hold out. Otherwise, we'll open Pandora's box, says the Finance Minister.
She also does not want to see the more permanent exemptions from the EU's strict budget rules that Germany has recently proposed.
That one borrows up for a short period to have a greater increase is one thing, but to do it long-term would be unfortunate, because then we'll get even higher debt in Europe. It's important now to hold out so that it doesn't end up with totally unsustainable debt situations in Europe within five to ten years, says Svantesson.
The EU countries' heads of state and government backed a five-point plan from the EU Commission last week, dubbed "Strengthening the EU".
The plan includes giving member states temporary exemptions from the EU's budget rules so that they don't have to risk fines and austerity measures for investments and loans to defense.
Additionally, a new EU fund is proposed, where 150 billion euros are borrowed, which countries can then borrow from for joint investments in, for example, air defense, artillery, drones, and ammunition.
Other parts include EU countries being allowed to use regional development funds for defense purposes, while more private investments are to be attracted through the European Investment Bank, EIB, and the acceleration of the EU's savings and investment union.
