A Great Opportunity for the Croatian Defense Industry: 8 Billion Euros Available

At a time when security challenges are shaping Europe and the technological race in the defense sector is rapidly gaining importance, Croatian companies are presented with a rare opportunity. Access to billions of euros from European funds for the development of advanced military technologies has been secured, and this was precisely the topic discussed at the EDF Info Day held in Zagreb, where representatives from the state and industry sent a message that now is the right time for a stronger breakthrough.

The event was organized by the Croatian Cluster of Competitiveness in the Defense Industry and the Croatian Employers’ Association, where companies from the defense industry were presented with financing opportunities from the European Defense Fund, valued at eight billion euros.

The European Defense Fund is a key financial instrument of the European Union aimed at strengthening the competitiveness and innovation of the defense industry and promoting cooperation among member states in the field of research and development, with funding secured for the period from 2021 to 2027 through more than 30 thematic areas. Defense Minister Ivan Anušić stated that Croatian companies need to actively utilize the available funds.

– This is a huge opportunity for Croatia, for our defense industry, and a great opportunity for young people, startups, and those who have vision and ideas but may not currently have sufficient financial resources – said Anušić.

He emphasized that Croatia already has a strong base, especially in the technological segment.

– We are talking about eight billion euros from the aforementioned European fund for the period from 2021 to 2027, and in Croatia, IT companies are leading the way in innovating in the field of unmanned systems and systems that utilize artificial intelligence – the minister highlighted.

Focus on Collaborations and Competitiveness

The president of the Croatian Cluster of Competitiveness in the Defense Industry and the CEO of Agency Alan, Goran Basarac, emphasized that the EDF is intended for the entire European defense industry.

– Certain Croatian defense companies have already applied for funding from the European Defense Fund with the support of the Ministry of Defense, and another significant portion is coming from the European Defence Industry Programme, which also opens an additional one and a half billion euros for increasing capacity and production – said Basarac.

He also emphasized that the fund represents a tremendous opportunity for the Croatian defense industry to engage in European research and development projects and become part of the EU’s strategic value chains.

– We place special emphasis on international networking and cooperation with contact points from other member states, and through workshops, info days, and B2B meetings, we strengthen the capacities of Croatian applicants and encourage the creation of quality consortia. Our goal is to increase the number of Croatian participants in EDF projects, strengthen competitiveness, and develop innovative defense technologies in Croatia in the long term – said Basarac.

The director of the Croatian Employers’ Association (HUP), Irena Weber, emphasized the broader economic significance of investing in the defense sector.

– Investment in the defense industry is an opportunity for the reindustrialization of the Croatian economy and the creation of quality jobs in high value-added industries. Modern defense is no longer built only in barracks and factories but in laboratories, research centers, the ICT sector, and innovative solutions from other sectors. If we want a strong defense, we must have a strong and innovative industry. Croatian employers are ready to be the bearers of these innovations and build Croatia’s defense capabilities – emphasized Weber.

During the conference, a Cooperation Agreement on the project ‘Modernization of Anti-Tank Mines‘ was signed between the Ministry of Defense of the Republic of Croatia and Agency Alan, signed by Minister Anušić and Director Basarac. During the event, Giorgio Trichilo from the Directorate-General for Defense Industry and Space of the European Commission (DG DEFIS) held a presentation in which he presented key priorities, thematic areas, and current tender opportunities within the European Defense Fund.

A panel discussion titled ‘EDF – An Opportunity for the Croatian Defense Industry?‘ was also held, featuring Goran Basarac, Katarina Markt, Hrvoje Bašić, Ive Botunac, and Tomislav Krolo. The panelists agreed that the EDF represents a significant opportunity for Croatian companies, especially in the context of engaging in international research and development projects and further strengthening technological and innovative capacities, with a special emphasis on fully utilizing modern technologies.