CEE & SEE Defense Weekly Briefing: July 27 – August 1, 2026
This week: Germany breaks ground on Europe's largest gunpowder plant, Croatia lands a Beretta ammunition deal, Lithuania passes 5 percent of GDP on defense, and a Bosnian manufacturer's costly email fraud.
Five stories defined Central, Eastern, and Southeastern European defense this week: a new European ammunition mega-plant, a small-caliber factory deal in Croatia, Lithuania's record defense spending, a costly fraud case in Bosnia, and Poland's push into US-made air defense production.
Germany breaks ground on Europe's largest gunpowder plant
Rheinmetall has started construction on what it describes as Europe's largest gunpowder production facility, part of the company's broader expansion of ammunition manufacturing capacity across the continent.
Why it matters: propellant supply has been one of the tightest bottlenecks in Europe's artillery ammunition ramp-up, and a facility of this scale directly addresses a constraint that has slowed deliveries across multiple national programs. Read the full story
Croatia lands a small-caliber ammunition factory with Beretta
Croatia signed an agreement with Italy's Beretta to build a small-caliber ammunition factory on Croatian soil, the week's best-performing story on AdriaDefense.
Why it matters: this adds Croatia to the growing list of CEE and SEE states building domestic small-caliber production, reducing reliance on imported ammunition for both national forces and export contracts. Read the full story
Lithuania becomes the latest NATO member to pass 5 percent of GDP
Lithuania's defense spending has climbed above 5 percent of GDP, placing it among the very top of NATO's relative spenders alongside Poland and its Baltic neighbors.
Why it matters: sustained defense spending above 5 percent from a country of Lithuania's size signals long-term procurement demand that foreign and domestic suppliers can plan around, not a one-year spike. Read the full story
Bosnia's Igman loses more than 750,000 euros to email fraud
Bosnian ammunition and arms manufacturer Igman disclosed it lost more than 750,000 euros in an alleged business email compromise scheme. A follow-up report indicates the company now expects to recover some of the funds.
Why it matters: business email fraud targeting defense manufacturers is a reminder that financial and cyber controls matter as much as physical security for companies handling large international payments. Read the full story and the recovery update.
Poland seeks a role in Patriot interceptor production
Poland is pursuing a role in Patriot interceptor production under a proposed partnership involving the United States and Ukraine.
Why it matters: this would mark a significant deepening of Poland's role in Western air defense supply chains, building directly on the industrial participation pattern already visible across its Wisła air defense program. Read the full story
From AdriaDefense.com this week
Our own guide to the European Union's defense funding instruments, EDF, EDIP, SAFE, and the newly agreed AGILE program, was the week's best-performing piece by click-through rate, reflecting strong reader interest in understanding exactly who can access this funding. Read the guide
Frequently asked questions
What was the biggest CEE and SEE defense story this week? Rheinmetall's groundbreaking on Europe's largest gunpowder plant, alongside Croatia's small-caliber ammunition factory deal with Beretta and Lithuania crossing 5 percent of GDP in defense spending.
