EU loan for weapons? “Bad idea”, says Sweden

Brussels – Sweden can imagine easing the EU’s budget rules so that more can invest in defense. But joint EU loans are still disapproved of by Finance Minister Elisabeth Svantesson.

When the EU countries’ economies needed help after the corona pandemic, a joint large loan was taken at the EU level. Several countries now want to do the same to enable major investments in defense.

That may very well be the end result, notes Finance Minister Elisabeth Svantesson.

“I think it’s an exceptionally bad idea with joint borrowing, but in this situation I don’t think anything should be excluded,” she said before the meeting with her EU colleagues in Brussels on Tuesday, with the escalating situation around the war in Ukraine as background.

Another option is to ease the EU’s tough budget rules and allow countries to borrow money themselves, even if it would result in larger budget deficits than what is normally allowed.

“I am generally worried about this, because Europe is already highly indebted,” says Svantesson.

According to Poland’s Prime Minister Donald Tusk, the EU Commission has “within a few days” promised to come up with proposals on how different joint EU funds can be used for defense.

Svantesson believes that it is much about prioritizing.

“Now all countries must do what they are set to do, namely build their own defense capabilities. This can be done by reprioritizing the budget. We have done it, we have reduced aid, put more money into defense, for example.”

(February 18)