Rutte and Plenković meet Croatian defense industry to discuss investment and modernization

NATO Secretary General Mark Rutte and Prime Minister Andrej Plenković met with representatives of the Croatian defense industry in Zagreb on Monday, emphasizing the importance of expanding production capacities and continuing investment in security.

The meeting, introduced by Goran Basarac, president of the Alan Agency’s Management Board and president of the Croatian Defense Industry Cluster, provided participants with an overview of Croatia’s defense production capabilities and industry offerings.

Prime Minister Plenković highlighted the industry’s focus on exports and its strong cooperation with the scientific community.

“The goal is to brief the Secretary General on your activities and your excellent cooperation with Croatian institutions, primarily the Ministry of Defense, while emphasizing the export orientation of cluster companies,” Plenković said.

He noted that in the current global climate, a surge in defense investment is expected. “Croatia allocated 2.08 percent of GDP to defense in 2025, totaling more than €1.93 billion. Modernization of the Croatian Armed Forces accounts for 34 percent of the defense budget,” he added.

Plenković outlined long-term targets: increasing defense spending to 3.5 percent of GDP and allocating 1.5 percent to defense-related activities over the next decade. He also underscored the defense industry’s role in achieving these goals, along with its cooperation with the scientific community.

“The industry has maintained an average annual turnover of €150–250 million over the past five years and directly employs 5,000 workers, with another 2,500 employed indirectly,” he said.

Secretary General Rutte stressed that deterrence cannot rely solely on spending; a strong industrial base is essential.

“Spending is important to protect ourselves from Russia, and an increasingly active China and North Korea. But true security requires a strong defense industry that works closely with the scientific community,” Rutte said. “We face constant threats from China, Russia, Iran, and North Korea, who are coordinating to undermine our security and stability. Industrial cooperation is expanding at an unprecedented level.”

Rutte also compared Croatia’s defense spending with that of Russia. “Russia spends 40 percent of its national budget on defense—around nine percent of GDP. This is not for show; these weapons are intended for use, as we see daily in Ukraine,” he said.

“If Ukraine loses the war, even 3.5 percent of GDP will not be enough. Without mobilizing industry, we cannot defend ourselves, and Russia knows that,” he added.