The
Edén Cabinet had in 1919 started an investigation into the Swedish Armed Forces in order to lower the high defence expenditure the
Defence Act of 1914 had resulted in. The investigation concluded in 1923 and the right-wing majority had decided on an expenditure cap of 120 million
Swedish crowns per year, 62 million less than the Defence Act of 1914 stipulated. The political parties all made differing judgements on how large of a war force Sweden needed. The political right claimed that
Russia represented a long-term threat to Sweden, and that Russia's political and economic troubles during the 1920s were just temporary. They also believed - due to Sweden's entry in to the
League of Nations - that the risk of Sweden being dragged in to war had increased. The liberal
Free-minded National Association referred to the weakened powers of Germany and Russia, the creation of the League of Nations and the war exhaustion that many nations were suffering through as a result of the First World War. The Free-minded had major hopes for international treaties regarding disarmament. The
Social Democrats predicted a sustained and stable period of peace, which did not motivate a strong defence in order to counter surprise attacks. A war in
Europe would be preceded by worsened international relations and thus give time for necessary rearmament. The Social Democrats believed that Sweden only needed to maintain neutrality in order to deflect foreign aggression. The proposition on a future defence encountered multiple setbacks during its discussion in the Riksdag, but in 1925, the Social Democratic
Sandler Cabinet agreed to a mainly Freeminder-backed proposal which involved a further decreased expenditure cap of 107 million crowns per year, equivalent to roughly 1,3 % of the Swedish GDP. == Reorganisation ==