Thursday, March 27, 2025

Polaris of Enlightenment

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Swedish Armed Forces seek freedom for costly purchases without government approval

Published 6 March 2025
– By Editorial Staff
Michael Claesson has been Sweden's Commander-in-Chief since October last year.

Last year, the limit for when the Swedish Armed Forces need government approval for purchases and other military equipment was raised from SEK 200 to 700 million (€18 to €60 million).

Now they want even more freedom and want to be able to make more expensive purchases than that without government approval.

The Swedish Armed Forces see a need to speed up the handling of certain investments compared to today in order to further promote rapid capability growth”, it says in the budget document for 2026-2028 submitted to the government.

Among other things, the Swedish military leadership wants a mandate to purchase unlimited amounts of bulk material” – such as ammunition, standard vehicles and personal equipment – without politicians being able to say no.

Similarly, it wants to be able to freely replace weapons and equipment donated to Ukraine during the current war.

As for “major acquisitions” of, for example, tanks, air defense systems, combat boats or radar systems, the government wants to continue to be able to buy these without political interference as long as the cost is less than SEK 700 million (€60 million).

Purchases of fighter aircraft, ship systems “or equivalent” must first be approved by the government regardless of the amount, just as before.

Substantial increase in the defense budget

The starting point for current governance is that the government makes decisions on individual materiel items once a year. In recent years, however, decisions on itemizations have been made on an ongoing basis as a result of changes in the international situation, decisions on support for Ukraine and decisions on increased ambitions. The Armed Forces assess that the need for ongoing decisions will remain for the foreseeable future and propose that this should instead be the starting point for governance”, they write.

The government has previously announced that it is “implementing the strongest reinforcement of total defense since the Cold War” and that the defense budget will grow to at least SEK 185 billion (€17 billion) by 2028 – 2.6% of GDP.

Analysts say the real increase is expected to be much higher than that and that it is likely that NATO member states will need to spend at least 3.5% of GDP on their defense in the future – which for Sweden would mean an additional €5,5-6.5 billion annually, on top of the sums already proposed.

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Swedish professor: Reasonable for future generations to pay for the rearmament

Sweden-NATO-relationship

Published today 14:18
– By Editorial Staff
Daniel Waldenström thinks it is right that taxes should be raised for future generations to finance today's build up.

Swedish leaders have decided to borrow €27.5 billion for a major military investment that Ulf Kristersson describes as the “biggest rearmament since the Cold War“.

Daniel Waldenström is a professor of economics, and he thinks it is perfectly reasonable that future generations of Swedes will have to pay for the current governments project.

The Moderate-led government has announced that Sweden will spend 3.5 percent of GDP on defense compared to the current 2.4 percent. To achieve this, they intend to borrow the equivalent of €4,600 per Swede of working age a total of €27.5 billion.

Waldenström, who works at the Institute for Business Research, does not think the sum is anything to argue about and points out that during the Second World War, Sweden went from spending 2% to 10% of GDP on defense in a single year.

He acknowledges, however, that the military effort will mean cuts in several areas.

– It means that we will have to reprioritize our spending. We will have to cut back on some things and give more priority to civilian and military preparedness and war capacity. This will mean reducing or eliminating some spending, otherwise we cannot afford it.

“Will take a bigger hit”

The fact that the huge investment is financed with borrowed money is not strange but fully justified, as long as you have a clear plan about what you need to borrow for.

– Only after we say, ‘this is how much money we will need for this expenditure’. Instead of starting by collecting money and putting it in a bag for unclear purposes and then risking that politicians will be able to ‘draw’ from this bag for lots of things that we had not intended. I would say that is a risk in such cases that we can avoid.

Since the money will be paid back with interest in the future, taxes will also have to be raised in the future, and Waldenström is clear that future generations of Swedes will be forced to finance the decisions made today.

– It’s clear that future generations will have to take a bigger hit than if we were to just go on this year’s budget. But it also seems reasonable that future generations should help finance reconstruction because it will also benefit them.

– It’s simply that they will have to pay a bit more tax as a result of this. They will have to pay taxes to finance our repayment of these loans, concludes the professor.

Swedish hospital director sentenced to prison for bribery

The corruption in Sweden

Published today 7:27
– By Editorial Staff
Large sums have been deposited in Adel Shalabi's private accounts in connection with purchases for the hospital.

Adel Shalabi, former director at Uppsala University Hospital, has been sentenced by the Svea Court of Appeal to 4.5 years in prison for corruption offenses.

In his professional role, Shalabi accepted roughly €425,000 in bribes from companies linked to former colleagues and the pharmaceutical and medical technology industries.

In late 2023, seven individuals, including Shalabi, were charged with bribery at Attunda District Court. The investigation revealed he had received a total of €425,000 from five companies, two of which were owned by former colleagues, while the others operated in the pharmaceutical and medical technology sectors.

It was discovered that tens of thousands of euros had been deposited in the hospital director’s private account in connection with the purchase of X-ray equipment by Uppsala University Hospital – and when the police began investigating Shalabi’s activities, they found a large number of additional suspicious transactions.

In the district court, he was sentenced to four years in prison for several counts of aggravated bribery – and six other people received shorter sentences for bribing the doctor.

“Abused his position of trust”

The Court of Appeal has now increased the sentence to 4.5 years’ imprisonment and found that Shalabi should be sentenced for several aggravated bribery offenses, aggravated breach of trust, aggravated fraud and aggravated accounting offenses. It is also noted that the corruption was systematic and that the chief physician was the driving force.

– In sentencing, the Court of Appeal has taken into account that the head of the practice has abused his position of trust and has been a driving force in the crime. Something that has also been important in this context is that the crime has been characterized by being systematic and directed against public and tax-funded activities, explains the Court of Appeal’s counsel Johan Klefbäck.

The sentence for the owner of a pharmaceutical company that sold medicine to the hospital is also increased – he is sentenced to one year and two months in prison instead of a suspended sentence and a fine.

Another person was sentenced to a shorter prison term for aggravated bribery, and three of the other people involved in the corruption scandal got off with suspended sentences and fines. Two of those convicted are former executives of major companies Canon Medical Systems and Siemens Healthcare.

Swedish government borrows billions for biggest military buildup since Cold War

Sweden-NATO-relationship

Published yesterday 14:35
– By Editorial Staff
The leaders of the governing coalition parties during Wednesday's press conference.

The Moderate-led government and the Swedish Social Democratic Party have agreed to borrow about €4,600 per Swede of working age for Sweden’s military rearmament a total of €27.5 billion.

– This will be the biggest rearmament since the Cold War, declares Ulf Kristersson (M).

During a press conference, the leaders of the coalition parties stated that Sweden will spend 3.5% of GDP on the military by 2030 compared to 2.4% today.

To reach this goal, the Swedish Armed Forces will receive an additional SEK 300 billion (€27.5 billion) and the investment will be financed through loans.

It’s about a loan-financed defense investment from this year through 2030 until 2035 that could amount to a total of about SEK 300 billion, confirms Ulf Kristersson.

– A European NATO that reaches 3.5% will be much, much stronger than we are today, the Prime Minister further claims.

More money for Kiev

The money will be used, among other things, to buy military equipment for the Swedish army – but there is also a promise to further increase military aid to Ukraine.

A decision has already been taken to provide Kiev with weapons and other support worth €2.3 billion annually until 2026 but now the Swedish government wants to use next year’s allocation already this year and add another €1.85 billion.

– We need to do what we can here and now to further strengthen Ukraine’s defense capabilities, says Johan Pehrson (L), Minister of Education.

NATO currently requires member states to spend at least 2% of GDP on their defense but that requirement is expected to be raised already this summer to somewhere between 3% and 5%, according to analysts.

The background to this is that the Trump administration wants Europe to take greater financial responsibility for the costs of the military pact. The US has also announced its intention to reduce its military presence on the continent, while Russia is increasingly identified by EU leaders as an urgent military threat that Europe must be ready to fight.

Swedish police: Municipalities should be required to report corruption

The corruption in Sweden

Published yesterday 11:07
– By Editorial Staff
NKG's Natali Engstram Phalén believes that changing the legislation would send a clear signal - and have a crime-preventing effect.

Corruption in Swedish municipalities and regions is considered to be widespread – but many corruption crimes are never discovered.</strong

Now the police’s National Anti-Corruption Group (NKG) wants to see a change in the law that makes it mandatory for municipalities and regions to report all suspected cases of corruption to the police.

In government operations, managers must currently report all suspicions of corruption-related crime to the police – but this requirement does not currently exist for either municipalities or regions, which means that the police are not aware of the crime, and thus cannot investigate it.

It is important to receive reports of suspected corruption from the entire public sector. Today, we estimate that there is a large number of unreported cases in both municipal and regional activities, says Natali Engstam Phalén, a lawyer at the national anti-corruption group.

NKG points out that most of the public sector’s corruption-sensitive activities are found in the municipalities and regions, and it can, for example, be about grants being paid out even though the recipient is not entitled to the money, or that permits and public procurement are granted on the wrong grounds.

The healthcare sector is identified as particularly susceptible to corruption, and the police point out that organized crime is keen to take over all activities that can feed the criminal economy.

Employees are bought out

It is important that the same rules apply to the entire public sector in terms of how to deal with corruption offenses. It is not reasonable that municipalities and regions do not report all suspicions of corruption to the police. The damage caused by corruption is the same whether it occurs in local, regional or central government. Ultimately, it is about the public’s confidence in public activities and how taxpayers’ money is spent, continues Engstam Phalén.

It notes that between 2023 and 2024, only 107 corruption offenses were reported to the NCG – and that only 15 of these came from Swedish municipalities and regions.

This is worrying given that so many corruption-sensitive activities are carried out at municipal and regional level. Often, suspicions of corruption are dealt with under labor law by buying out employees. The risk is then that the person can continue their criminality in other public workplaces, the lawyer notes.

The group now wants to see a change in the law whereby those responsible at Sweden’s municipalities and regions are obliged to report all suspected corruption – and it believes that legislators should be able to use the regulations that already exist and apply to government activities.

This would send a clear signal about the importance of vigorously fighting corruption across the public sector. We also believe that it would have a crime-preventing effect while bringing more people to justice, concludes Natali Engstram Phalén.

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