Croatia to launch €1.9 billion defence upgrade to boost army strength and NATO interoperability

By Defence Industry Europe

In June 2024, the Ministries of Defence of Croatia, Estonia, and France signed a Framework Agreement for the joint European procurement of CAESAR artillery systems. The agreement is aimed at encouraging EU Member States to cooperate on joint defence procurement and at strengthening the technological and industrial base of European defence.
Photo: KNDS.

Croatia will begin four major defence procurement projects worth a total of €1.9 billion by the end of 2025, the Ministry of Defence announced on Thursday. The initiative is aimed at strengthening the Croatian army, supporting the domestic defence sector, and improving interoperability with NATO forces.

 

The parliamentary defence committee has endorsed the procurement procedures, which include the acquisition of Leopard 2A8 tanks, CAESAR MK2 howitzers, an anti-drone system, and Tatra military trucks. Croatia reintroduced compulsory military service for men last week, having abolished it in 2008 before joining NATO in 2009.

The planned purchases are: an anti-drone protection system worth €125 million, 44 Leopard 2A8 tanks valued at approximately €1.3 billion, 18 CAESAR MK2 self-propelled howitzers worth €320 million, and 420 Tatra T-815-7 trucks estimated at €200 million. According to the ministry, deliveries of the equipment will take place between 2026 and 2030.

 

 

The anti-drone system will be financed from the Ministry of Defence’s budget and will include two stationary and two mobile units to protect critical military infrastructure. “For the anti-drone protection system, the ministry will sign a framework agreement with local electrical engineering company Koncar,” the ministry stated.

The remaining three projects will be funded through loans from SAFE, the EU’s post-2022 programme to enhance defence readiness in response to Russia’s invasion of Ukraine. “Other Croatian firms may join the project, which aims to reduce dependence on foreign suppliers,” the ministry added.

Croatia will acquire 18 Caesar 6×6 MK2 howitzers via a joint procurement coordinated by France’s Armaments Agency (DGA), in partnership with Estonia, Bulgaria, Portugal, and Slovenia. The contract includes additional equipment and support to standardise operational capabilities across partner nations.

The procurement of the Leopard 2A8 tanks was approved in November 2024, with the ministry confirming the contract will be signed before the end of the year. The deal will also include three simulators, spare parts, and logistical support, with delivery scheduled from 2028 to 2030.

 

 

Croatia will join a framework agreement already signed by the Czech Republic, Slovakia, and Tatra Defence Systems for the joint procurement of Tatra military trucks. “The agreement will allow a partnership between Croatian special vehicles producer Djuro Djakovic Specijalna Vozila and Tatra Defence Systems, under which final assembly and maintenance of the trucks will be carried out in Croatia,” the ministry said.

The Tatra T-815-7 trucks meet all NATO standards for ballistic and mine protection and are currently in use by 21 NATO member states.

 

 

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