Sweden increases defense spending amid concerns over Russian aggression

The Swedish government intends to introduce a new bank tax to greater defense spending due to the growing threat from Russia. This was reported by the head of the defense department Peter Hultqvist and Minister of Finance Magdalena Andersson, DW informs.

Andersson noted that there is an opportunity to increase bank tax, which, according to her forecasts, will help to boost defense spending by 5 billion Swedish kroons (EUR 462 million) in 2022.

Hultqvist said the profit of four large banks – Handelsbanken, Nordea, Swedbank and SEB amounted to 112 billion SEK (EUR 10 billion) last year, which is three billion (EUR 277 million) higher than in 2017. He emphasized the need to make sure that these funds will fund targeted needs.

The Swedish media reported that Hultqvist, speaking in favor of boosting defense budget, referred to the growth of external threats. As an example, he cited, in particular, Russia’s aggression against Georgia and the annexation of the Ukrainian Crimea.

As The Journalist reported, Sweden, Poland foreign ministers arrived in Kyiv to meet with President.