Denmark and Sweden are increasing defense spending and taking steps to limit their dependence on American technology, payment systems and military supplies. The changes are part of a broader restructuring of the Nordic countries in the face of increased risks from Russia, tensions with China and uncertainty about the role of the United States in European security.
In an article by Greg Ip for The Wall Street Journal, Sweden is cited as an example of a country that is strengthening the resilience of its critical infrastructure. Since July, Swedish consumers have been able to buy essential goods with Visa and Mastercard cards without a network connection. The central bank, the Riksbank, wants to extend this option to Swish – local mobile payment system.
“This whole geopolitical situation has shown that you have to have backup options in your business“, said Riksbank Governor Erik Thedeen.He pointed out that the Swedish payment system relies on two major card networks that originate from the same country - the United States. According to Thedeen, this should be taken into account when planning for the sustainability of the financial infrastructure.
More money and people for defense
The Scandinavian countries are increasing their military budgets against the backdrop of Russia's proximity to the Baltic Sea. According to data from the Stockholm International Peace Research Institute, Denmark and Norway will allocate a larger share of their gross domestic product to defense than the United States by 2025. A decade ago, their spending was three times lower.
In Denmark and Sweden, the increase in military spending has received support from both left and right-wing parties. Danish military intelligence estimates that Russia could be ready for war in the Baltic region within two years of a ceasefire in Ukraine and for a large-scale war in Europe within five years. The forecast is made assuming a slow rearmament of NATO and no American intervention.
Sweden will call up 9,000 new recruits in 2026, compared to 3,500 in 2018, when conscription was reinstated. The country is also discussing the possibility of sending conscripts outside its national borders.
Denmark is now including women in conscription and extending its term from four to 11 months. Households are advised to keep a three-day supply of food, water, medicine and a solar- or battery-powered radio.
Attempt to build its own defense industry
The change also affects military production. Denmark is taking the first steps towards building its own defense industry, including by producing drones for Ukraine with Ukrainian expertise. Minister of Business and Competitiveness Martin Lidegaard plans to present a strategy to stimulate military production in the coming months.
Sweden already has a significant defense industry, but is encouraging joint procurement with its European allies and Canada. The country is buying frigates from France, while Paris is acquiring the GlobalEye radar surveillance aircraft from the Swedish company Saab.
Denmark and Sweden are also looking for new trading partners outside the US and deepening their cooperation in the Nordic region. A new Northern Growth Alliance will work on joint initiatives in quantum technologies, data centers and space technologies.
Sources: bgnes.bg