Norway to reach target of 3.5pc of GDP on defence with new spending boost

OSLO: Norway is to raise defence spending by another 115 billion crowns (USD12 billion) by 2036, the government said on Friday, as it also delayed committing to long-range defence systems while it learns lessons from the Ukraine war.

The spending comes on top of Norway’s previously announced plan to spend 1.62 trillion crowns (USD167 billion) on defence between 2025 and 2036.

Norway, like other NATO members, is increasing defence spending as a result of the war and under pressure from US President Donald Trump. The extra spending will take Norway to its NATO commitment of 3.5 percent of GDP in 2035, the government said.

“We are … allocating a significant increase in resources to the long-term plan, while also carefully weighing the priorities needed to rapidly strengthen Norway’s defence capabilities,” Prime Minister Jonas Gahr Stoere told a press conference.

Norway is NATO’s monitor for the vast 2 million square km (772,000 square miles) area of the North Atlantic used by the Russian northern fleet’s nuclear submarines.

It is the only country in Europe that does not need to borrow money to finance increased defence spending, thanks to its USD2 trillion sovereign wealth fund, the world’s largest.

It is also one of few countries where there was a consensus across the board when the long-term defence plan was first presented, with all parties in parliament backing it in 2024.

Support for Ukraine would come in addition to the 3.5 percent of GDP spending, the government said.

Oslo has committed to buy six submarines from Germany’s TKMS and at least five frigates from Britain’s BAE Systems as well as long-range rockets and artillery systems from South Korea’s Hanwha Aerospace.

The first of the six submarines will be delivered in 2029 while the first two frigates are expected to arrive in 2030 and 2032, respectively, Stoere said on Friday.

Norway will also prioritise short-range air defence and defence against drones, as a result of lessons learned in the Ukraine war.

Among elements being delayed are long-range maritime surveillance drones as well as long-range anti-ballistic air defences.