Sweden announces ammunition production investment and budget review

The Swedish government has announced a 45 million euro investment to bolster domestic ammunition production, supported by the European Defence Industry Programme (EDIP). Defense Minister Paul Jonsson stated that the state will invest 500 million kronor into the production of gunpowder, explosives, and critical components. This initiative includes a co-financing model where the state matches EU investments for Swedish projects.

Funding will be directed toward various production units, including the manufacturer EURENCO and the startup SWEBAL, which aims to open a TNT production facility by 2028. Part of this production is expected to support Ukraine’s military efforts.

Separately, Prime Minister Ulf Kristersson’s administration has launched an exhaustive review of state spending to optimize resources and identify potential savings. A special committee, led by Director General Eke Nordlander, has been established to evaluate government functions and propose the termination of unnecessary services. The government is looking at budget priority reallocations totaling up to 50 billion kronor for 2026.