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Croatia’s €2 billion military leap: tanks, drones, and Balkan tensions

Croatia is launching its most ambitious military overhaul in decades, with parliamentary approval for four major defence projects totaling €1.945 billion.

Driven by heightened geopolitical tensions in the Balkans and Europe, particularly since Russia’s invasion of Ukraine, the initiative aims to create a faster, smarter, and more mobile armed forces fully aligned with NATO standards.

It encompasses cutting-edge acquisitions, from French Rafale fighter jets and German Leopard 2A8 tanks to advanced anti-drone systems, self-propelled howitzers, and heavy-duty trucks, while reintroducing mandatory basic military training for young men and delivering a significant boost to the domestic defence industry.

The program, presented by deputy prime minister and defence minister Ivan Anušić, draws partial funding from the European Union’s SAFE instrument for three of the projects, with the anti-drone system financed directly from the state budget.

Croatian firms like Končar and Djuro Djaković will collaborate with international partners, including Poland’s Advanced Protection Systems and Czech-based Tatra Defence Systems, through technology transfers, local production, and maintenance partnerships. As Anušić emphasized, this is not merely about procuring equipment but investing in knowledge, technology, and the nation’s industrial base to integrate Croatia deeper into Europe’s defense supply chain.

At the heart of the modernization is a €125 million anti-drone defence network, set for implementation between 2026 and 2029. A framework agreement with Končar will deliver two stationary and two mobile systems to safeguard military facilities. The first phase, due by mid-2027, focuses on AI-supported detection, jamming, and interception capabilities linked via a cyber-resilient command network. The second phase introduces mobile platforms armed with 30mm cannons. Polish partner APS will transfer production of its SKYctrl system to Croatia, paving the way for broader local manufacturing opportunities in an era where digital warfare dominates the battlefield.

Croatia is also acquiring 18 next-generation France-made Caesar MK2 6×6 self-propelled howitzers for around €320 million, joining France, Estonia, Bulgaria, Portugal, and Slovenia in a joint purchase coordinated through the French armaments agency. The package includes reconnaissance tools, fire control systems, communications, and logistical support, with contracts expected this year and full delivery by 2029. Funded via SAFE, these artillery pieces will enhance precision and mobility on the ground.

The centerpiece remains the €1.3 billion deal for 44 Germany-made Leopard 2A8 main battle tanks, among the world’s most advanced, complete with simulators, spare parts, and comprehensive logistics. Production begins in 2028, with deliveries wrapping up by 2030, replacing outdated armor and elevating Croatia’s land forces to top NATO benchmarks. Complementing this, a €200 million investment will bring 420 TATRA T-815-7 heavy off-road trucks in 6×6 and 8×8 configurations, shared with the Czech Republic and Slovakia under a joint agreement signed by year’s end. Local assembly and maintenance by Djuro Djaković Specijalna Vozila will further invigorate Croatian industry, as these vehicles, already operational in 21 NATO countries, offer superior ballistic and mine protection.

With deliveries extending to 2030, the Croatian armed forces will emerge transformed: more agile in battlefield mobility, resilient against cyber threats, and equipped for modern conflicts. “By combining local expertise and European cooperation, Croatia is securing not only its borders but also its technological future,” Anušić declared.

In addition, Croatia has separately reinstated compulsory military service after a 17-year hiatus, scrapping the draft in 2008 for a professional force.

This buildup occurs against a backdrop of regional tensions. In September, Serbian President Aleksandar Vučić escalated rhetoric by claiming the Balkans are dividing into rival military blocs, accusing Croatia, Kosovo, Albania, Slovenia, and potentially Bulgaria of forming alliances aimed at Serbia.