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BRUSSELS – The defense package presented by the European Commission on Wednesday is an opportunity for the development of the Croatian defense industry in order to strengthen its own military capabilities, announced Prime Minister Andrej Plenković after a meeting with European Commission Commissioner Andrius Kubilius.
“Ahead of the European Council, I am discussing the priorities of the white paper on European defense, which represents a framework for supporting investments in the defense capabilities of member states. To this end, the ReArm Europe plan foresees the creation of a new instrument of 150 billion euros for favorable loans,” Plenković announced on the social network X.
“This is an opportunity for the development of the Croatian defense industry in order to strengthen its own capabilities,” he added.
He announced that by 2027 Croatia will increase its defense spending to 2.5 percent of GDP.
“With strong economic growth, we will have the opportunity for further investments in the Croatian army, along with the financing of other priorities,” Plenković announced.
On Wednesday, the European Commission presented a defense package worth hundreds of billions of euros that should respond to Ukraine’s urgent needs and the long-term need to strengthen Europe’s security and defense.
The Commission presented a white paper on European defense, “Readiness 2030”, which proposes solutions to fill critical gaps in military capabilities and to build a strong military-industrial base.
As part of the ReArm Europe/Readiness 2030 Plan, the Commission also presented a defense package that should release 800 billion euros for defense investments over the next four years.
The plan foresees an increase in defense spending by 1.5 percent of the GDP annually for member states. To this end, the Commission calls on member states to activate the national derogation clause from the stability and growth pact, which will provide them with additional budget space to increase defense spending, within the EU’s fiscal rules.
These derogations will be limited only to the increase in defense expenditures.
Part of the plan is also a new dedicated Security Action Instrument for Europe – SAFE
The SAFE instrument foresees an amount of 150 billion euros for which the Commission would borrow on financial markets and then provide favorable loans to member states for joint defense projects. (March 19, 2025)