Brussels – Sweden is open to the idea of relaxing the EU’s budget rules to facilitate increased defense investments. However, Finance Minister Elisabeth Svantesson remains opposed to the concept of joint EU borrowing.
In response to the economic challenges posed by the COVID-19 pandemic, EU member states previously agreed to a significant collective loan. Currently, several nations are advocating for a similar approach to support substantial defense expenditures.
Finance Minister Svantesson acknowledges this possibility, but expresses strong reservations. “I consider joint borrowing to be a very unwise option; however, in light of current circumstances, we should not dismiss any potential solutions,” she remarked prior to a meeting with her EU counterparts in Brussels, amidst ongoing tensions related to the war in Ukraine.
Another alternative under consideration is the modification of the EU’s stringent budgetary regulations, allowing individual countries to increase borrowing even if it leads to larger budget deficits than typically permitted.
“I have concerns about this approach, as Europe is already grappling with a significant debt burden,” Svantesson stated.
Polish Prime Minister Donald Tusk indicated that the EU Commission is expected to present proposals within days on how various EU funds could be utilized for defense purposes.
Svantesson emphasized the importance of prioritization in defense spending. “It’s essential for all nations to focus on enhancing their own defense capabilities. This can be achieved by reallocating budget resources. We have done this by reducing foreign aid and increasing our defense budget, for instance.”
(February 18)
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