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Swedish Banks to Foot the Bill as Russia Prompts Defense Splurge

Swedish Army's Gotland regiment load a machine gun on a range on the island of Gotland. 

Swedish Army's Gotland regiment load a machine gun on a range on the island of Gotland. 

Photographer: Tom Little/AFP via Getty Images

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Sweden’s government is planning to impose a new tax on the financial industry to fund higher defense spending as it ramps up efforts to counter Russia’s military build-up in the Baltic Sea.

The two-party minority government has agreed with the Center Party and the Liberals, which cooperate with it on budget policies, to introduce a new tax on banks that will finance an additional 5 billion kronor ($508 million) in defense spending in 2022, Finance Minister Magdalena Andersson said in Stockholm on Saturday. She said further details on how the tax will be designed will be provided later.