Sweden announced its largest defense investment since the 1980s on Tuesday, unveiling a $4 billion agreement to purchase four advanced warships from France as the country accelerates military expansion after joining NATO.
Prime Minister Ulf Kristersson said the deal would triple Sweden’s naval air defense capabilities and strengthen security in the Baltic Sea region. The frigates will be supplied by Naval Group, with the first delivery expected in 2030.
Sweden to buy navy frigates from France for over $4 billion to boost Baltic defence https://t.co/TRW9LSFCOF https://t.co/TRW9LSFCOF
— Reuters (@Reuters) May 19, 2026
The announcement comes as European nations continue increasing defense spending following Russia’s invasion of Ukraine and NATO’s push for members to raise military budgets to 5% of GDP by 2035.
Defense stocks rallied after the announcement. Saab rose more than 5%, while German firms including Rheinmetall and Hensoldt also gained sharply.
Analysts said European defense companies are benefiting from rising military modernization efforts across the continent.
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