Europe is gearing up for a fight. Under the European Union’s ReArm Europe plan, which was announced in March, Brussels has changed its fiscal rules to allow member states to boost defense spending by up to 1.5 percent of GDP. In concrete terms, the union is looking to increase investment into the defense sector by €800 billion over the next four years.
European rearmament is a response to what the EU paper announcing the plan calls “the rapid deterioration of the geopolitical context and rising tensions” in world politics. European Commission President Ursula von der Leyen justified the new policies, arguing that the “era of the peace dividend is long gone.” Calling the European security architecture something that “can no longer be taken for granted,” she called on Europe to “invest in defence, strengthen [its] capabilities, and take a proactive approach to security.”
In this race to rearm Europe, Sweden in particular is well-placed to play a leading role. As European commissioner for defense and space, Andrius Kubilius, recently noted, “Sweden has a very strong defense industry and is carrying out a major rearmament, so it is a good example for other member states” as the continent bolsters its military capabilities. Kubilius specifically identified Saab’s “artillery systems” and “armored vehicles,” which he described as “top-tier capabilities that make Sweden valuable to all of [Europe].” Furthermore,Sweden recently announced that it will dedicate roughly 3.5 percent of its GDP to defense spending by 2030, amounting to roughly $30 billion.