Government Considers Terminating Collaborations and Agreements for Security Reasons
A deteriorating security situation in Europe, coupled with offensive actions from countries like Russia and China, has prompted the Swedish government to reassess its security policies. As a result, collaborations and exchanges with foreign actors that were previously seen as uncomplicated are now regarded as potential security threats. To address this issue, the government plans to introduce the ability to terminate agreements and collaborations promptly when deemed necessary for security reasons.
One example given by Minister of Justice Gunnar Strömmer (M) is a collaboration involving the development of a particular product or technology crucial for Sweden’s defense. In such cases, countries with opposing interests to Sweden could gain influence, posing a threat to national security.
Although security-sensitive activities are already covered by the Security Protection Act, it does not extend to collaborations and agreements that were not initially considered security-sensitive. Therefore, an investigator has been tasked with proposing a future system that grants the state more authority to intervene in such situations.
Another step toward bolstering security measures is the implementation of a new law on December 1. Under this law, the state will have the power to review and halt foreign direct investments and company takeovers deemed to pose security risks. This has become relevant in light of China’s increasing economic strength and foreign investments. For instance, a state-owned Chinese company is the largest owner of Swedish wind power, while the Chinese company Geely has owned Volvo Cars for over a decade.
Minister Strömmer emphasizes the need to address this issue proactively. Therefore, in addition to pre-checking direct investments, the government seeks to close the gap that prevents retrospective reviews of contractual collaborations. The ability to intervene retrospectively would be activated if it is deemed crucial for Sweden’s security.
The government cites “recent” situations that have put Sweden’s security at risk as a basis for implementing these regulations. However, the specific cases are withheld to maintain confidentiality. The aim is to create preparedness and tools to manage any future security threats effectively.
To support these measures, an investigation has been initiated with four key focuses. These include proposing a system for government intervention in contractual relationships and ongoing procedures, analyzing the prerequisites for compensating businesses affected by government interventions, proposing coercive measures in the Security Protection Act, and determining which registers the Security Police should have access to for information collection.
The investigation is to be completed by November 29, 2024. With these steps, Sweden aims to enhance its security and protect its interests in an increasingly uncertain global landscape.
Source: Government Office