Norway Ready to Increase Defence Spending Ahead of NATO Summit
Norway's Prime Minister, Jonas Gahr Stoere, announced on Saturday that the country is "ready to stand up and be counted" on defence spending, ahead of the NATO Washington summit in July. Stoere stated that Oslo is preparing a new long-term defence plan in response to the country's commitment to raise defence spending to at least 2% of gross domestic product (GDP) by 2026, in line with NATO's goal.
Commitment to Defence Spending Target
While all 31 NATO allies have committed to a target of spending 2% of their output on defence, not all have individually met the goal. Stoere expressed openness to bring forward the deadline for Norway's defence spending target. He mentioned that the government plans to present a new long-term defence plan, developed in collaboration with experts and political parties, in the coming months. Stoere emphasized the importance of investing in defence capacity to strengthen Norway's position.
Strengthening Military Presence
Norway's defence spending as a percentage of overall economic activity declined after the Cold War. However, recent events like the war in Ukraine and Norway's Arctic border with Russia have highlighted the need for a stronger military force. Despite not perceiving a direct military threat, Stoere acknowledges the importance of being prepared in the face of an authoritarian and militarized neighbor. He stated, "That's why we have to strengthen our own defence."
Looking Ahead
As Norway prepares to participate in the NATO alliance summit from July 9-11, Prime Minister Stoere's comments suggest a willingness to accelerate the process of increasing defence spending. While specific details regarding the timeline and amount remain undisclosed, Stoere's commitment to standing up and being counted on defence reflects Norway's determination to prioritize its national security.
Analyst comment
Neutral news: Norway is preparing a new long-term defense plan and is open to speeding up its target of spending 2% of GDP on defense by 2026. The prime minister stated that a significant strengthening of investment in defense capacity is key. Norway sees the need for a stronger military due to the war in Ukraine and Russia’s militarization. As an analyst, the market can expect increased defense spending and investments in the defense sector.
