The Norwegian government has announced a plan to increase defense spending by 600 billion kroner ($56 billion) over the next 12 years to bolster its defence against Russia and other security challenges.
“This plan represents a historic boost in defence spending and involves a significant strengthening of all branches of the armed forces,” Prime Minister of Norway, Jonas Gahr Støre told a press conference.
“We need a defense that is fit for purpose in the emerging security environment,” Prime Minister Jonas Gahr Støre said.
“As our security environment is deteriorating, we need to spend more on and pay more attention to defense and preparedness,” Gahr Støre said, adding that his two-party government wants to spend a total of 1.624 trillion kroner ($152 billion) between now and 2036.
“A stronger defence system here will act as a deterrent to those who seek to threaten our security and our allies,” Støre said as he presented the government’s defence white paper.
He stated that NATO-member Norway wants to, among other things, buy at least five new frigates and submarines, plus the Scandinavian nation’s first long-range air defense system, and expand the army from one to three brigades.
The Norwegian Prime Minister revealed that due to its rainy-day sovereign wealth fund, the world’s largest with assets of 17 trillion crowns, Norway has access to the cash it needs to fund the increased defence spending without cutting down on hospitals or schools.
Nonetheless, annual government spending from the wealth fund will remain restricted as before to 3% of the overall assets, the government said.
Finance Minister of Norway, Trygve Slagsvold Vedum said that the increase would be made “without a cut in people’s public services” and the proposed spending would create jobs and investments in Norway.
According to the Finance Minister, the planned annual defence spending in 2036 will, on a comparable, inflation adjusted basis, be around 83% higher than the current level.
He said that the defence budget would rise from 91 billion kronor this year to 166 billion in 2036.
It represents three percent of Norway’s gross domestic product (GDP), up from this year’s two percent, which is NATO’s minimum threshold.
The coalition government that includes the social democratic Labor party and the left-leaning Center Party is expected to win support for the proposal in the 169-seat Storting assembly.
No date for a vote was set.
The main opposition, the Conservative Party, already sent out a positive signal and said that the white paper constitutes “a good basis for negotiations.”
Norway recently announced plans to ramp up defence spending in 2024 to 2% of its gross domestic product, making it the latest NATO member nation to officially adopt a target set by the military alliance.
Norway Not A Threat
Moreover, Norway’s Prime Minister, Jonas Gahr Støre asserted that his country “is no threat to anyone, nor is NATO.”
Nonetheless, he stressed that Norway must have the capability to defend itself if crisis and war occur.
The war in Ukraine has significantly shifted Norway’s discussion on military spending, triggering a debate on how to guard against potential Russian aggression.
The Nordic country shares a border with Russia in the Arctic but has never been at war with its neighbour.
“Norway is a nation with considerable maritime interests,” the government said.
It added, “Combined with our immediate proximity to Russia’s nuclear submarine force, maintaining situational awareness in the High North and in the North Atlantic is paramount.”
“We must expect that Norway will live with a more dangerous and unpredictable Russia for many years,” the government said in a paper delivered to parliament on Friday.
“The relationship with Russia will for a long time to come be demanding, and in many ways defining for Norwegian security and defence policy,” it added.
Earlier this month, oil-rich Norway said it wants to increase the number of conscripted soldiers from the present 9,000 to 13,500 by 2036.
