Sweden moves ahead with plans for new foreign intelligence agency
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Sweden moves ahead with plans for new foreign intelligence agency

Published by Global Banking & Finance Review

Posted on May 5, 2026

2 min read

· Last updated: May 5, 2026

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Sweden Advances Plans for New Foreign Intelligence Agency to Meet Security Needs

Swedish Government Moves Forward with Intelligence Reforms

Background and Motivation for the New Agency

STOCKHOLM, May 5 (Reuters) - The Swedish government said on Tuesday it was moving ahead with plans for a new foreign intelligence agency after past criticism that security officials failed to predict Russia's 2022 invasion of Ukraine despite signs of a military build-up.

Creating a new civilian agency for foreign intelligence, reporting directly to the government, had been proposed in a public investigation and given an initial go-ahead last year.

Security Challenges and NATO Alignment

"As is well known, we have a serious security situation and we face a broad and complex threat picture every day, and this places new and increased demands on our capabilities," Foreign Minister Maria Malmer Stenergard told a press conference.

"We also have new expectations of ourselves as a NATO ally, and as we now develop our intelligence structure, we will also better match the structures that exist within NATO and among our allies."

Existing Intelligence Agencies and Their Roles

Current Structure and Criticism

Like many other intelligence agencies, Sweden's Military Intelligence and Security Service (MUST) did not foresee a full-fledged Russian invasion of Ukraine, leading to criticism in an official review and from some politicians.

Other Key Agencies

The new agency will work alongside existing authorities which include MUST, the Swedish Security Service (SAPO), a part of the police force, and the National Defence Radio Establishment (FRA), which is responsible for signals intelligence.

Budget and Timeline

Financial Implications

Stenergard said the cost of the new agency will be around 2.8 billion crowns ($302 million), resources which will primarily be transferred from the armed forces budget.

Implementation Schedule

It is set to begin work at the turn of the year.

($1 = 9.2695 Swedish crowns)

(Reporting by Niklas Pollard and Anna Ringstrom, editing by Terje Solsvik)

Key Takeaways

  • A civilian Agency for Foreign Intelligence will be created to separate military and foreign-policy intelligence functions, with launch slated for January 1, 2027.
  • The reform draws on a 2025 government review led by Carl Bildt, aiming to modernize intelligence capabilities, including OSINT and digital infrastructure.
  • Costs (SEK 2.8 billion) will mostly come from armed forces budget, and the move is partly driven by criticism that MUST failed to predict Russia’s 2022 invasion of Ukraine.

Frequently Asked Questions

Why is Sweden creating a new foreign intelligence agency?
Sweden is establishing a new foreign intelligence agency following criticism that security officials failed to predict Russia's 2022 invasion of Ukraine.
What is the main role of the new agency?
The agency will report directly to the government and enhance Sweden's foreign intelligence capabilities to match NATO and allied structures.
How much will the new intelligence agency cost?
The agency will cost around 2.8 billion crowns ($302 million), primarily funded by reallocating resources from the armed forces budget.
When will the new agency begin operations?
The agency is set to begin work at the turn of the year.
Will the new agency replace existing intelligence services in Sweden?
No, the new agency will work alongside existing authorities such as MUST, SAPO, and the National Defence Radio Establishment (FRA).

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