BRUSSELS – Prime Minister Andrej Plenković announced on Wednesday that the defense package unveiled by the European Commission presents a significant opportunity for advancing Croatia’s defense industry and enhancing its military capabilities. This announcement followed his meeting with Andrius Kubilius, the European Commission’s Commissioner.
“As I prepare for discussions at the European Council, I am focusing on the key priorities outlined in the white paper on European defense, which aims to provide a framework for bolstering investments in the defense capabilities of EU member states. The ReArm Europe plan includes the establishment of a new financial instrument worth 150 billion euros to facilitate favorable loans,” Plenković shared on social media platform X.
He emphasized that this development represents a crucial chance for Croatia to strengthen its defense industry.
The Prime Minister further revealed that Croatia plans to raise its defense spending to 2.5 percent of GDP by 2027.
“With robust economic growth, we will be positioned to invest further in the Croatian military while also addressing other important national priorities,” Plenković stated.
On the same day, the European Commission introduced a comprehensive defense package valued at several hundred billion euros, aimed at addressing the immediate needs of Ukraine and enhancing Europe’s overall security and defense posture.
The Commission released a white paper entitled “Readiness 2030,” which outlines strategies to address critical military capability gaps and to develop a robust military-industrial base.
As part of the ReArm Europe/Readiness 2030 plan, the Commission also unveiled a defense strategy designed to mobilize 800 billion euros for defense investments over the next four years.
The proposal includes an annual increase in defense spending by 1.5 percent of GDP for member states. To facilitate this, the Commission encourages member states to invoke the national derogation clause from the stability and growth pact, allowing for increased budgetary flexibility to enhance defense spending while adhering to EU fiscal regulations.
These derogations will be specifically designated for increased defense expenditures.
Additionally, the plan introduces a new Security Action Instrument for Europe – SAFE. This instrument will allocate 150 billion euros, which the Commission will borrow from financial markets to provide favorable loans to member states for collaborative defense initiatives. (March 19, 2025)
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