Albania
Albanian Prime Minister Edi Rama has defended the state-owned company Kayo against corruption allegations, saying it was created to protect state interests. He also highlighted rising military pay, new NATO-linked capabilities, and a push to expand Albania’s domestic defense production.
Opinion
Western Balkan states are revisiting compulsory military service as security pressures rise. Slovenia is debating a limited return, Serbia is moving fast, and Croatia has already begun enforcement—while Bosnia and Herzegovina remains held back by political deadlock and underfunding.
Ukraine
Ukraine’s drone industry has exploded since 2022, with over 500 companies now producing drones across the country, making it one of the most active UAV manufacturing hubs in the world.
Bosnia and Herzegovina
A central Bosnian defense manufacturer has posted a record financial year, pointing to a broader revival of the country’s military industry as rising global demand fuels new production and investment.
Bosnia and Herzegovina
Bosnia and Herzegovina has approved a multi-year modernisation package for its armed forces, covering helicopters, specialised vehicles, ammunition stocks, and new field uniforms as part of a broader 2025–2030 defence investment programme.
Croatia
Croatia has secured €235.7 million in its 2025 budget to fund advance payments for CAESAR Mk2 self-propelled howitzers and Leopard 2A8 main battle tanks, pushing national defense spending above the NATO benchmark and reinforcing ongoing force modernization efforts.
Events
UMEX and SimTEX 2026 will take place in Abu Dhabi from 20–22 January, marking the largest edition yet and showcasing global innovations in unmanned systems, AI, robotics, and simulation technologies.
Poland
Poland has allocated nearly EUR 210 million in 2025 to PGZ companies under the NAREW program, boosting domestic CAMM-ER missile production and air-defense industrial capacity.
Poland
Zakłady Mechaniczne Tarnów have secured PLN 309.6 million (€71m) in state-backed financing to expand production, service, and R&D capacity. The investment strengthens Poland’s domestic defence manufacturing base and supports key air defence programmes, including Pilica+ and Narew.
Italy
Italy has received its first Rheinmetall Skynex air defence system, becoming the first NATO member to field the cannon-based solution designed to counter drones and low-altitude threats, with the initial battery handed over at the Air Defence Artillery Command in Sabaudia.
Poland
Poland has launched construction of a multi-layered anti-drone defence system along its eastern border, integrating electronic warfare, air-defence weapons, and rapid-response logistics hubs to counter drone incursions, sabotage, and hybrid threats linked to Russia and Belarus.
Kosovo
Kosovo plans to launch local production of the Albanian-designed “Shota” armored vehicle under a trilateral defense cooperation framework with Albania and Croatia, a move officials say would be the first joint armored vehicle program in the Balkans.