Croatia Eyes Economic Boost Through Growing Defence Industry
Croatia has a significant chance to expand its economy through the growth of its defence industry, Deputy prime Minister and Defence Minister Ivan Anušić stated on November 4, emphasizing the sector’s potential given increasing European security concerns.
Speaking at the Croatian Defence Industry 2025 – European Opportunities, Dual-Use Technologies and Global Security conference in Zagreb, Anušić noted that global demand for defence equipment has risen sharply since Russia’s invasion of Ukraine, creating new avenues for Croatia’s high-tech manufacturers.
“The defence industry is now ‘in’ in the world, but five or six years ago it was practically unrecognisable and unprofitable,” anušić said. “I believe that at this moment croatia has a huge opportunity to develop its economy and industry in the direction of the defence industry.”
Anušić highlighted several croatian firms as examples of innovation and competitiveness in global defence markets, including HS Produkt, končar, Đuro Đaković, Šestan-Busch and Orqa. He also pointed to DOK-ING, whose robotic systems are exported as far as South Korea.
“our products are high-quality, innovative, and in some segments leading in Europe and the world,” he said, adding that Croatia is a leading nation, alongside the Netherlands and Latvia, in the European “Drone Coalition”.
Croatia Focuses on Economic Growth Through Defence Industry Investment, EU Collaboration
Croatia is strategically aligning its defence investments with economic progress, aiming to foster new jobs, industries, and technological advancements within the country. This approach emphasizes the integration of the defence sector with broader economic goals and leverages European Union funding opportunities.
According to a statement from the Croatian government, State Secretary Šušnjar emphasized that “Every investment in defence must contribute to new jobs, new industries, high technologies, and the development of Croatian industry and economy.” Šušnjar further stated that a strategy is underway to improve connections between the Croatian defence industry and EU funding sources to drive further economic growth.
This initiative aligns with the EU’s broader commitment to strengthening Europe’s defence capabilities and industrial base. Zrinka ujević, head of the European Commission’s Representation in Croatia, affirmed the EU’s dedication to accelerating joint European projects and mobilizing both industrial and financial resources to achieve this goal, as reported in the Croatian government statement. https://ec.europa.eu/commission/representation_hr/news/croatia-focuses-economic-growth-through-defence-industry-investment-eu-collaboration_en
Context and Recent developments:
Croatia has been actively working to modernize its armed forces and increase its defence spending, particularly considering the evolving geopolitical landscape. In recent years, the country has made significant investments in military equipment, including https://www.reuters.com/world/europe/croatia-signs-deal-buy-us-black-hawk-helicopters-2023-12-21/ Black Hawk helicopters from the United States.
The emphasis on linking defence spending to economic benefits reflects a growing trend within the EU to promote a more integrated and resilient defence industrial base. The European Defence Fund (EDF) https://defence-industry-space.ec.europa.eu/eudf_en is a key instrument in this regard, providing funding for collaborative defence research and development projects. Croatia’s strategy to connect its defence industry with EU funding sources will be crucial in accessing these resources and maximizing the economic impact of its defence investments.
This approach is expected to not only strengthen Croatia’s national security but also contribute to the broader EU objective of enhancing its strategic autonomy in the defence sector.