Croatia announces €2.18 billion defence modernisation package

(Photo: MORH/ T. Brandt)

The Croatian Government has approved a sweeping €2.18 billion investment package to modernise the Croatian Armed Forces, marking the country’s most significant defence upgrade in decades. The decisions were adopted at the Cabinet’s 131st session on 4 December 2025, the Ministry of Defence confirmed.

The wide-ranging programme will see the acquisition of state-of-the-art anti-drone defence systems, new artillery, next-generation main battle tanks, and a major renewal of the military’s logistics vehicle fleet. Much of the funding will come through the EU’s SAFE instrument, with additional allocations provided from the national budget.

Deputy Prime Minister and Defence Minister Ivan Anušić said the investments represent “the biggest step forward in modernising the Croatian Armed Forces in recent decades”, stressing that the new equipment will directly enhance national security and Croatia’s ability to meet NATO capability targets.

Anušić highlighted the strong involvement of Croatian industry, including Končar-Digital and Đuro Đaković Specijalna Vozila, as well as a network of domestic suppliers. Their participation, he noted, will strengthen Croatia’s industrial and technological base, support knowledge transfer, and create new jobs.

Advanced Anti-Drone Systems

Responding to rising security risks and the increasing use of drones in modern conflicts, Croatia will procure four advanced anti-drone systems. Two will be stationary units protecting critical military infrastructure, while two will be mobile systems integrated on vehicles for medium infantry brigades.

The project will be implemented through a five-year framework agreement with Croatian company Končar-Digital, which will act as system integrator and produce part of the equipment supplied by Poland’s Advanced Protection Systems. This arrangement will bring partial production of the SKYctrl system to Croatia.

The investment is valued at €156.25 million and will be funded from the state budget between 2026 and 2029. The first phase is expected to be completed by mid-2027.

18 CAESAR MK2 155mm Self-Propelled Howitzers

Croatia will join Estonia, Bulgaria, Portugal and Slovenia in a joint procurement of 18 CAESAR MK2 self-propelled howitzers through France’s defence procurement agency. The project includes not only the artillery systems themselves but also observation and target-acquisition equipment, fire-control systems, communication assets, armoured vehicles and transport vehicles for ammunition.

The investment is worth €328.09 million, of which €301.59 million will be financed through SAFE. The remaining €26.5 million will come from the state budget between 2026 and 2030. The framework agreement is set to be signed next week in France, with deliveries planned for 2030.

44 Leopard 2A8 Main Battle Tanks

One of the centrepieces of the modernisation programme is the procurement of 44 Leopard 2A8 main battle tanks, including simulators and extended-warranty logistics support. The acquisition is being carried out through a joint European framework led by Germany’s Federal Ministry of Defence, authorised to sign the addendum with manufacturer KNDS Deutschland on Croatia’s behalf.

The Croatian Armed Forces previously completed a tactical study and capability requirements, defining the operational needs for the Leopard 2A8. Minister Anušić emphasised that the new tanks will significantly enhance readiness, speed up modernisation timelines, reduce long-term costs and boost interoperability with NATO partners.

Deputy Prime Minister and Defence Minister Ivan Anušić (Photo: MORH/ J. Šeri)

Germany has already transferred €144.8 million to Croatia as compensation for tanks, armoured vehicles and ammunition donated to Ukraine in late 2024. The full amount will go towards financing the Leopard 2A8 acquisition, easing the overall cost for Croatia.

The total investment amounts to €1.48 billion. SAFE will cover €1.14 billion between 2026 and 2030, with the remainder financed from the state budget until 2033. The framework agreement will be signed next week in Germany, with tank deliveries scheduled between 2028 and 2030.

420 TATRA T-815-7 Heavy Tactical Trucks

To strengthen logistical mobility and modernise its vehicle fleet, Croatia will acquire 420 TATRA T-815-7 heavy tactical trucks in 6×6 and 8×8 configurations. The procurement is part of a joint framework agreement involving the defence ministries of the Czech Republic, Slovakia and Croatia, along with Tatra Defence Systems.

Final assembly and full maintenance of the vehicles will be carried out at Đuro Đaković Specijalna Vozila in Slavonski Brod, further boosting local industry. The trucks meet NATO standards for ballistic and mine protection and are already in service with 21 NATO member states.

The investment is worth €212.29 million, financed through SAFE, with deliveries planned from 2026 to 2030.