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Norway adds $12 billion to its long-term defence plan

Published by Global Banking & Finance Review

Posted on March 27, 2026

3 min read

· Last updated: April 1, 2026

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Norway adds $12 billion to its long-term defence plan
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OSLO, March 27 (Reuters) - Norway will increase the spending in its long-term defence plan by 115 billion Norwegian crowns ($11.87 billion) in the period until 2036, the government said on Friday. ($1

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

Norway's Defence Spending Plans and Strategic Priorities

By Gwladys Fouche

OSLO, March 27 (Reuters) - Norway is to raise defence spending by another 115 billion crowns ($12 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 ($167 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 U.S. President Donald Trump. The extra spending will take Norway to its NATO commitment of 3.5% of GDP in 2035, the government said.

Government Statements and Parliamentary Support

"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 $2 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% of GDP spending, the government said.

Vast Procurement Programme

Major Defence Acquisitions

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.

Focus on Air Defence and Drones

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

Delays in Long-Range Systems

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

Stoere said more work was needed to reach the right decision, given the experience from Ukraine, where current air defence systems struggle with countering this type of Russian missile.

"We need to see how we can answer that best," he said. 

Nordic Coordination and Technology Considerations

Defence Minister Tore Sandvik said it was important to have a coordinated Nordic effort to buy similar systems, which is not the case at present.

For the drones, the delay is due to prohibitive costs, but also because new technology is developing fast and new solutions may be more relevant, Norway's chief of defence Eirik Kristoffersen said.

($1 = 9.6840 Norwegian crowns)

(Reporting by Gwladys Fouche, Editing by Terje Solsvik and Alison Williams)

Key Takeaways

  • The additional NOK 115 billion enhances Norway’s already historic long‑term plan totalling ~NOK 600 billion (~$60 billion) through 2036, aiming to nearly double defence spending in real terms (regjeringen.no).
  • The long‑term plan funds critical capability upgrades—including new frigates, submarines, long‑range air defence, expanded Army brigades, and boosted personnel and infrastructure (regjeringen.no).
  • This spending surge is driven by heightened regional threats—chiefly from Russia—and leverages Norway’s strong economy and oil‑fund model to bolster security without sacrificing public services (nordicdefencereview.com)

References

Frequently Asked Questions

How much will Norway increase its defence budget?
Norway will increase its long-term defence plan budget by 115 billion Norwegian crowns, equivalent to about $11.87 billion USD, until 2036.
What is the timeframe for Norway's increased defence spending?
The increased defence spending is planned for the period until 2036.
What is the current exchange rate between the US dollar and Norwegian crown?
The reported exchange rate is $1 equals 9.6857 Norwegian crowns.
Who reported the increase in Norway's defence budget?
The increase was reported by Gwladys Fouche and edited by Terje Solsvik.

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