The war in Ukraine and the US's new stance on the security situation in Europe means that both Sweden and other European countries must take greater responsibility for their defense, says Magdalena Andersson.
A total defense fund would, according to the Social Democrats, facilitate the large and rapid investments required.
The exact figures for such a fund must be determined with the help of expert authorities' assessments, says Magdalena Andersson at a press conference.
But our assessment is that such a total defense fund should be able to cover at least 250 billion kronor. But it could be more than that.
Civil and Military
The fund would, according to the Social Democrats, be able to contribute to accelerating investments and facilitating the rapid expansion of both civil and military defense. For example, the money could be used for infrastructure, IT security, and medical stockpiles.
Exactly how the fund – which the Social Democrats want to finance through loans – affects the national debt is difficult to say, according to the party's financial policy spokesperson Mikael Damberg.
It depends on the growth we have in the economy going forward. It's several percentage points on the national debt, but it's not certain that it will have that effect over time, he says.
Comparison with Denmark
In Denmark, the government has decided on a fund of 50 billion Danish kronor – equivalent to approximately 75 billion Swedish kronor – which will be used this year and 2026 for defense. The Social Democrats say that a Swedish fund would run for a longer period, but a maximum of ten years.
Not everything is solved with such a fund, admits Magdalena Andersson.
Ongoing costs will need to be fully financed in the long run. We will need to make tough priorities even going forward, she says.
The Social Democrats have previously proposed a so-called preparedness tax to partially finance ongoing defense expenditures, but no further details have been presented.
We will need to increase taxation for the wealthiest, so the preparedness tax is very much alive.
