Croatia Bolsters Defense with €1.7 Billion EU Loan

Croatia signed a €1.7 billion loan agreement with the European Union under the SAFE mechanism to enhance its defense capabilities. The funds will be used to procure military equipment, including German tanks and French howitzers. Croatia also plans to increase defense spending significantly by 2035.

Devdiscourse News Desk | Sarajevo | Updated: 14-05-2026 20:05 IST | Created: 14-05-2026 20:05 IST

Croatia Bolsters Defense with €1.7 Billion EU Loan — This image is AI-generated and does not depict any real-life event or location. It is a fictional representation created for illustrative purposes only.

Country:
Bosnia And Herzegovina

On Thursday, Croatia finalized a significant loan deal with the European Union, securing €1.7 billion under the SAFE mechanism. This financial backing aims to bolster the country's defense readiness.

Prime Minister Andrej Plenkovic announced that the loan, spread over 45 years, will facilitate the procurement of German Leopard tanks, French Caesar howitzers, and Czech transport trucks, along with various ammunition types. This is part of a wider strategy to enhance Croatia's military prowess.

With plans to increase its annual defense budget from 2.1% of GDP in 2025 to an ambitious 5% by 2035, Croatia underscores its commitment to strengthening national security infrastructure.

(With inputs from agencies.)