New submarines could break budget

Earlier this year the government announced that Sweden is to invest SEK 8.2 million to buy two new submarines, but the constructor Saab Kockums now claims that the amount may not be enough, daily Svenska Dagbladet reports.

Saab Kockums is currently negotiating the details of the upcoming order with the Defence Materiel Administration, FMV, and the government is waiting for the negotiations to finish before officially placing the order.

Svenska Dagbladet writes that if the two A26 submarines end up costing more than the 8.2 million that the Swedish government has set aside, the government may need to either lower its ambitions for the new subs or postpone other investments to be able to finance them.

The Defence Materiel Administration expects to reach a deal with Saab Kockums within seven days, but Sebastian Carlsson, press spokesperson at Saab, is less optimistic and tells SvD that they expect the order to be placed later this year.