Croatia Approves €2 Billion Defense Modernization Package, Accelerating NATO Readiness
Croatia has approved a landmark €2.05 billion defence modernization package, acquiring Leopard 2A8 tanks, CAESAR Mk2 howitzers, a domestically integrated anti-drone system, and 420 Tatra military trucks. Funded via the EU SAFE instrument, the deal accelerates Croatia’s NATO interoperability.
Zagreb — Croatia has cleared a sweeping €2.05 billion defence upgrade package, locking in major land-combat, mobility, and counter-UAS acquisitions that will anchor its force structure for the next decade. The approval was announced on December 4 during a cabinet session led by Prime Minister Andrej Plenković.
The package is financed largely through the EU’s SAFE instrument, allowing Zagreb to expand capabilities without breaching fiscal limits, while meeting NATO’s rising readiness and spending benchmarks.
Core Procurements
The modernization slate spans four pillars:
| System | Supplier | Value | Notes |
|---|---|---|---|
| Leopard 2A8 Main Battle Tanks (44 units) | Germany | ~€1.5 bn | Discount of €145 m granted by Berlin following Croatia’s Leopard transfers to Ukraine |
| CAESAR Mk2 155mm Howitzers (18 units) | France (via DGA joint procurement) | €328 m | Acquired jointly with Estonia, Bulgaria, Portugal, Slovenia |
| Anti-Drone System (SKYctrl Domestic Integration) | Končar-Digital + APS Poland | €156.3 m | Croatian integration & partial production under tech-transfer |
| Tatra Military Trucks (420 units) | Czech Republic / Assembly by Đuro Đaković** | €212.3 m | Final assembly & lifecycle support in Croatia |
Domestic Industrial Upside
The anti-drone contract anchors one of the most significant defence-tech transfer deals in Croatia’s post-independence history. Končar-Digital will integrate and co-produce components of APS Poland’s SKYctrl system domestically, ensuring maintenance sovereignty and building a local counter-UAS production base.
Additionally, Đuro Đaković Specijalna Vozila will assemble and maintain the Tatra truck fleet, securing long-term industrial offsets and a recurring support pipeline.
Force Design Impact
Defence Minister Ivan Anušić described the package as “a direct investment in national security and NATO force goals,” emphasizing heavy-land modernization and counter-drone dominance as core requirements in Europe’s evolving threat environment.
The Leopard 2A8 fleet replaces mixed-standard legacy armor, bringing Croatia in line with Germany, Norway, Czech Republic, Lithuania, and Italy—states converging around the 2A7/2A8 standard for interoperability and sustainment.
Strategic Context
At the June NATO summit in The Hague, allies committed to lifting combined defence outlays toward 5% of GDP by 2035 for core capabilities and industrial reinforcement. Zagreb’s move signals an early pivot toward that target and cements Croatia as a regional contributor in heavy armor, artillery, and counter-UAS domains.
Frame contracts for CAESAR and Leopard 2A8 are scheduled to be signed next week in Paris and Berlin, formalizing one of the most consequential modernization cycles in Croatia’s recent history.
