Sweden will step up defence spending and cooperation

Subject Sweden's defence plans. Significance Facing perceived security challenges from Russian military activity in the Baltic Sea region, Sweden will boost defence spending, step up military readiness and strengthen cooperation with its neighbours and NATO in the next decade. Impacts A new government after 2022 will come under pressure from the Swedish Armed Forces to increase spending further. Sweden sees cyber warfare as one of its main threats and will combine military resources and private firms to bolster capabilities. Sweden will strongly advocate having UK and US participation in future PESCO projects, which could create tensions with other EU countries.

2016 ◽  
Vol 19 (3) ◽  
pp. 317-336 ◽  
Author(s):  
Merli Reidolf

Purpose – The purpose of this paper is to develop a framework for analysing the configuration of knowledge networks used by innovative rural small- and medium-sized enterprises, and the nature of the relationships between knowledge transferring actors. Design/methodology/approach – The research is based on semi-structured interviews with rural innovative entrepreneurs and regional key informants. Social network analysis (SNA) was used to identify configuration of relationships, and content analysis to understand the nature of the knowledge relationships. Findings – Higher innovation levels are related to proactive and strong relationships with extra-local actors, usually from the international level, mainly from the Baltic Sea region. The actors, who have a greater role in innovation, are special customers, scientific organisations and non-human actors (e.g. trade fairs). Greater variety in proactive relationships helps achieve higher-level innovations. Reactive and weaker relationships tend to be related to lower innovation levels. Originality/value – This study contributes to the development of rural innovation research practice through the development of a framework for analysing the configuration of knowledge networks and the nature (activity and strength) of relations between actors. Thus, two different dimensions not used together previously are combined and advanced. In addition, in this paper, the relations that go beyond a region’s borders are also included, compared to earlier studies, where SNA was commonly used only with reference to relations inside a territory. An example from Central and Eastern Europe supplied to the literature on rural innovation networks is of additional value.


Significance The past year has seen the Russian military expand its exercises and other activities in the region. As well as creating a new joint command for the Arctic, the Kremlin is increasing the capacity of its military and paramilitary forces to operate there, including on search-and-rescue missions. This ramp-up reflects the broader modernisation of the entire armed forces, which Putin reiterated yesterday remained a key priority. Impacts Other countries engage in military activities in the region, but only Russia has taken major steps to militarise its Arctic frontier. Russian leaders profess peaceful motives but warn that Moscow will defend its Arctic interests with force if necessary. Russia will commission a fleet of highly versatile vessels that can serve as tugs, icebreakers or patrol ships.


Subject Outlook for Nordic-NATO defence cooperation. Significance The Russian intervention in Ukraine and assertive stance against NATO -- particular in the Baltic Sea region -- has pushed the Nordic countries of Denmark, Finland, Norway and Sweden to reassess their defence and security policies in order to be better prepared to manage crises and deter aggression in northern Europe. This constitutes a sharp change in strategic outlook, as the Nordic-Baltic region has been characterised by low tensions, stability and continued economic and political integration since the end of the Cold War. Impacts Nordic participation in multilateral international operations may wane as their defence focus shifts to the Baltic region. Scandinavian procurement programmes present commercial opportunities to defence and aerospace firms. Prioritising bilateral security arrangements may fragment a unified US-Nordics approach to regional security. Closer security ties with the West are likely to compromise Scandinavia's negotiating position with Moscow on other issues.


Subject Moldova's armed forces. Significance Russia's military build-up in Crimea and other parts of the continent, combined with its intervention in Syria, continue to alarm nations in Eastern Europe. With Moscow maintaining a military contingent in Transnistria and its growing military presence regionally, Moldova's armed forces and their relations with NATO will come under greater focus. However, Moldova's financial plight will make military reform and boosting defence spending difficult. Impacts The banking scandal that has rocked the political scene will push defence reform lower down the political agenda. A more militarily capable Moldova would be a useful partner for Ukraine in the future. Moldova may be invited to participate in more NATO exercises to enhance capacity-building measures.


Significance BALTOPS 16 will be the largest NATO maritime exercise in the Baltic Sea in recent years. The exercise is also held mere weeks before NATO's July 8-9 summit in Warsaw, and therefore serves as a tangible prelude to the alliance's intent to address renewed Russian security challenges in the region. Impacts Improvements in Western missile defence systems will make it more difficult politically to undergo arms control cooperation with Moscow. Poland's military modernisation programme will boost its ability to be a security partner of the Baltic states. Washington is unlikely to approve a permanent US military presence in the Baltic states in the near-to-medium term.


Subject Russia's diversified military capacity in Syria. Significance Russian armed forces played an active role in the Syrian government's recapture of Palmyra in March, despite the partial withdrawal of Russian aircraft from Syria. As well as air strikes, months of Russian military training and arms deliveries enhanced the Syrian army's combat capacity, contributing to a rapid collapse of Islamic State group (ISG) resistance. The operation showed how Russia has widened the instruments available: it can scale conventional air strikes up or down, provide fire support from helicopters or artillery, and use these elements to compensate for deficiencies in the Syrian military, while supplying weaponry, training and coordination to local forces. Impacts Russian military support can ensure the Syrian regime's survival, but that will require a long-term presence. The recapture of Aleppo would constitute a near fatal blow to the Syrian rebel movement. The Russian military will learn lessons about weaponry and coordination from the Syrian operation. Elements of these lessons including control of proxy forces may be applied in future foreign interventions. The use of mercenaries, trialled in Syria, offers Moscow a useful and deniable instrument abroad.


Significance The Soryu class is currently under consideration by Canberra as a replacement to the RAN's aging fleet of Collins-class submarines, in light of intensifying security challenges in the Asia-Pacific region. Impacts New submarines will significantly increase Australia's ability to monitor and deter military activity along its northern approaches. Beijing will see the procurement as further evidence of potential encirclement, spurring on its own submarine programme. Canberra will be seen as a critical partner for Tokyo's expanding foreign and defence policy engagement in the Indo-Pacific.


Subject Russian defence spending and procurement. Significance The recent shift in government spending towards social and economic development is being achieved without upsetting strict budgetary discipline, but defence and security expenditure is declining as a share of GDP. Limited procurement plans make life more challenging for the defence industry than for nearly a decade. Impacts Defence firms will find it hard to export weapon types that the Russian military does not want. The GDP growth boost of 2018 is likely to give way to growth of around 1.0-1.5% in 2019, as tax rises dampen economic activity. Higher-than-projected oil prices might allow some surplus budgetary funds to be used to top up planned defence spending commitments.


2015 ◽  
Vol 9 (1) ◽  
pp. 120-132 ◽  
Author(s):  
Olli-Pekka Hilmola

Purpose – Purpose of this research is to shed light on the changes caused by shipping sulphur regulation, which will globally take off during years 2015 and 2020. It has significant effects on diesel markets globally, but especially in regions, where demanding 0.1 per cent level is required. One of these regions is the Baltic Sea. It is relatively undealt issue, how this forthcoming change will affect these specific sub-regions of stiff 0.1 per cent sulphur level demand and their transportation modes with different tax obligations. Design/methodology/approach – The authors use second-hand data from various different sources, earlier research as well as simulation to estimate the effects on the diesel markets and transportation prices in the Baltic Sea region. Different transportation modes have diverging taxation treatment on diesel oil use, which complicates analysis further. Findings – Based on research findings, it is rather probable that diesel markets for sulphur-free diesel oil shall face price spike in the beginning of 2015 in the Baltic Sea region. This is mostly explained with needed large-scale scrubber investment and short-time span to complete these (there are both technical and financial challenges). Therefore, numerous ships shall enter sulphur-free diesel oil market. Based on the simulation study, freight transportation will mostly be hurt in shipping, whereas road and rail shall face smaller price increases. Results are mostly explained with taxation treatment, where shipping is still using tax-free diesel oil, and no fixed taxes are hedging this transportation mode from sudden price changes. Research limitations/implications – Analysis concerns only Baltic Sea region, and effects and changes in the entire Europe from sulphur regulation change in 2015 are unknown. This would mean to extent study to North Sea. In addition, taxation system harmonization is not yet complete in Europe, and differences exist between member states. Research work was completed with diesel oil tax treatment regarding different transportation modes in Finland. Practical implications – Based on this study, short sea shipping will be hurt by regulation change in 2015. However, in the future, this transportation mode shall face additional cost increases, as most probably, tax harmonization in diesel markets shall lead to fixed taxes added on shipping diesel. So, transportation mode shall face difficult and challenging times ahead. Originality/value – Research is seminal study from possible sulphur regulation change implications in transportation mode level. It takes into account taxation treatment, cost share of diesel in transportation mode level and possible diesel price change. Until today, no other study exists in this detailed level.


Subject Saudi Arabia's Sunni Arab alliance. Significance King Salman bin Abd-al-Aziz of Saudi Arabia held talks in Riyadh with President Abdel Fattah el-Sisi on March 1. It was the latest in a series of meetings the king has had with the leaders of the kingdom's main Arab allies -- the five other members of the Gulf Cooperation Council (GCC), plus Jordan. Since coming to power in January King Salman has prioritised efforts to resolve differences among some of those allies and strengthen coordination in the face of perceived security challenges emanating from the conflicts in Iraq, Libya, Syria and Yemen, and from Iranian influence in the region. The new king appears to be seeking to put his stamp on the monarchy by restoring Saudi Arabia's traditional leadership of regional policy and security. Impacts The fragile truce between Cairo and Doha is likely to break down. Prospects have improved for greater regional cooperation to help the mainstream Syrian opposition. Saudi proxy intervention in Yemen is likely to escalate, complicating efforts to resolve the stand-off with the Huthis. The UAE and Egypt will step up intervention via proxies in Libya.


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