Swedish Defence and Security Export Agency to be phased out

2015-06-17

The Government decided on 23 April that the Swedish Defence and Security Export Agency (FXM) is to be phased out – provided that the Riksdag (the Swedish Parliament) approved the spring amending budget bill. Since the bill has now been passed by the Riksdag, state defence export structures will be changed at the end of the year, and FXM will be phased out.

Parts of FXM’s operations will be transferred to the Swedish Defence Materiel Administration (FMV). The sectors of its operations to be transferred are sales of the Swedish Armed Forces’ surplus equipment and the state’s responsibility for tendering and agreements in intergovernmental defence export deals. Export support assignments for other defence agencies that are implemented after requests from companies will also be transferred.

Other parts of FXM’s operations will be terminated, which means that a dialogue on the direction and priorities of the next three years’ export activities will not be conducted with the companies and agencies concerned. The general and proactive export-promoting activities that were undertaken in a dialogue with companies and the industrial organisation, the Swedish Security and Defence Industry Association (SOFF), will not be transferred to FMV either. Nor will the latter organisation be taking over the overall analysis process aimed at assessing the benefits to defence of exports.

“This is very disappointing news for us, but we naturally have respect for democratic decisions. We were commissioned by the last Government to create more transparency, clearer roles, more comprehensive central government insight and more efficient operations. The Swedish Agency for Public Management undertook an evaluation of this last autumn and concluded that we had largely achieved our objectives after only four years. We are proud of this”, says FXM’s Director-General Ulf Hammarström.

The phase-out of FXM is to be concluded by 31 December this year. The transferral process has already begun and FXM and FMV are working together to make the process go as smoothly as possible.