Sweden Backs EU Plan to Boost Defense with Flexible Budget Rules

Sweden supports the EU Commission's plan to strengthen Europe's defense. It is a good proposal that has been presented, says Prime Minister Ulf Kristersson (The Moderate Party).

» Published: March 04 2025

Sweden Backs EU Plan to Boost Defense with Flexible Budget Rules
Photo: Christine Olsson/TT

He announced this in connection with the Riksdag's EU Committee ahead of the extraordinary summit on Thursday.

The EU Commission's plan to strengthen Europe's defense involves, among other things, making the EU's budget rules more flexible.

This means in practice that member states that invest in strengthening their national defense will not be punished by EU rules that set exact limits for deficits and national debt, says Kristersson.

Guarantees loans

Another proposal in the plan is for the EU to reprioritize unused funds in the EU's long-term budget, so that they can be used for defense investments.

A third proposal is a "loan mechanism," which allows countries that need to borrow to strengthen their defense to do so with the EU budget as collateral.

Member states would then fully guarantee the repayment of their own loans, but with the EU budget as collateral and thus get a better interest rate, says Kristersson.

According to Kristersson, this is not the same as the much-debated EU joint loans that are often discussed – and which Sweden has always opposed. Even if the EU borrows the money, each individual country is responsible for interest and repayment.

The Prime Minister emphasizes that we are in a very serious security situation and that it is therefore important for individual countries to do their part to strengthen their national defense and for the EU to do what is required.

The government is therefore willing to work constructively with these proposals, all within the framework, of course, for long-term sustainable European financing.

New support package

Kristersson also emphasized that it is obvious that Ukraine needs to be "strong, independent, and secure" in order to achieve lasting peace in Europe.

In order for this to be possible, the whole of Europe must pull its weight. Everyone should now increase their military support to Ukraine, says Kristersson.

Sweden will take its responsibility and we are prepared to do more.

According to Kristersson, preparations are underway for a "further ambitious support package". However, he is pessimistic about new EU support packages, as Hungary and Slovakia are vetoing.

I'm afraid it will be difficult to agree on new joint support from the EU, said Kristersson to the media after the EU Committee.

For the same reason, he does not believe that the EU can agree on new sanctions against Russia either.

When asked if Kristersson still trusts that NATO's defense clause, Article 5, still applies after all the statements from Washington, the Prime Minister responds that he has not met anyone in NATO who doubts it.

NATO applies, NATO works.

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By TTThis article has been altered and translated by Sweden Herald

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