Croatia receives 1,7 billion from the EU to strengthen its defense

Zagreb announced that it will use the loan money to purchase Leopard tanks, Caesar howitzers, trucks and ammunition, while announcing an increase in defense spending.

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Photo: REUTERS
Photo: REUTERS
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.

Croatia today signed a 1,7 billion euro loan agreement with the European Union under the SAFE mechanism, designed to accelerate the strengthening of member states' defense preparedness, Reuters reported. SAFE (Security Action for Europe) is a 150 billion euro financial instrument that provides member states with favorable loans with low interest rates and long repayment terms for urgent defense procurement and strengthening industrial capacities.

The loan agreement was signed in Banski Dvori by the Croatian side by Defense Minister Ivan Anušić and Finance Minister Tomislav Ćorić, as well as by European Commissioner for Defense Andrius Kubilius, Croatian media reported.

Croatian Prime Minister Andrej Plenković said that this is a favorable loan, with a maturity of 45 years, and that it will be mainly used for the purchase of German "Leopard" tanks, French "Caesar" howitzers, Czech trucks for transport and logistics, as well as various types of ammunition. In December last year, Croatia signed a Memorandum of Understanding with Germany on the purchase of 44 "Leopard 2A8" tanks.

Plenković said that in his ten years in office, his government has tripled the defense budget, which reached 2,1 percent of GDP in 2025, and that about a third of these allocations go to modernizing the army.

Zagreb previously announced plans to increase annual defense spending from 2,1 percent of GDP in 2025 to 2,5 percent of GDP by 2027 and to three percent by 2030, with the goal of reaching five percent of GDP by 2035.

Kubilius, the first European Commissioner for Defense and a former two-term Lithuanian Prime Minister, said in his address that "these are not easy times" for Europe, which has faced several wars.

He called SAFE "an unprecedented instrument," and praised Croatia for showing "clear leadership in taking responsibility for its own defense."

Kubilius presented Croatia as an "example for other countries" of similar size, highlighting its introduction of military service, modernization of the air force, as well as leadership in European initiatives such as the development of unmanned aerial vehicles.

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