O S C E FORUM FOR SECURITY COOPERATION

PARTICIPATING STATE

REPUBLIC OF

ANNUAL EXCHANGE OF INFORMATION ON DEFENCE PLANNING 2012

VIENNA DOCUMENT 2011

CONTENTS

II. DEFENCE PLANNING ...... 3

15. GENERAL PROVISIONS ...... 3

15.1. DEFENCE POLICY AND DOCTRINE ...... 3

15.1.1. Defence Policy, Military Strategy/Doctrine ...... 3

15.1.2. National Defence Planning Procedures ...... 8

15.1.3. Personnel Management Policy ...... 11

15.2. FORCE PLANNING ...... 14

15.2.1. Size, Structure and Capabilities of the CAF ...... 14

15.2.2. Deployment of the CAF ...... 16

15.2.3. CAF Education and Training ...... 19

15.2.4. Equipping and Modernization ...... 22

15.3. BUDGET INFORMATION ...... 23

III. ANNEXES ...... 24

2 II. DEFENCE PLANNING

15. GENERAL PROVISIONS

In accordance with Article 15 of the Vienna Document 2011 , the Republic of Croatia presents information on Defence Planning for the year 2012. The Defence Budget for FY 2012 was adopted by the Parliament of the Republic of Croatia on February 24th, 2012, as a part of the State Budget for 2012.

15.1. DEFENCE POLICY AND DOCTRINE

15.1.1. Defence Policy, Military Strategy/Doctrine

Defence Policy

Defence Goals of the Republic of Croatia are defined on the basis of national values, interests and security needs. The Republic of Croatia is determined to safeguard its freedom, independence and sovereignty under all security conditions.

The main defence goals of the Republic of Croatia which determine its basic areas of activity are:

 Development and maintenance of defence capabilities for deterrence of threats to vital national interests and the successful defence of the Republic of Croatia and its allies;

 Contribution to the efforts by the Republic of Croatia on the international level in building confidence and security through participation in operations that support international security and peace and through international defence cooperation;

 Development of capabilities and provision of support to civilian authorities of the Republic of Croatia and to humanitarian activities abroad;

 Effective management of the defence system by enhancing the efficiency of the main functional areas.

3 In practice, the defence policy of the Republic of Croatia is developed and conducted with respect to the following principles:

 Building a defence system in accordance with democratic standards and processes (democratic control over the defence system, transparency of defence policy, planning and the defence budget);

 Suitability of the defence system in respect to security conditions;

 Maintaining an appropriate level of military capabilities within the framework of the state’s economic and budgetary capacities;

 Rational planning and management of defence resources;

 Respect for national traditions and values, especially experience from the Homeland War;

 Consistent conduct of accepted international obligations.

Defence policy was conducted within the framework of given strategic documents of the Republic of Croatia and the Croatian Government Program for the 2009 to 2011 mandate. Defence policy was also conducted according to guidance and decisions by , the President of the Republic of Croatia and Supreme Commander of the Armed Forces, and the Government of the Republic of Croatia.

Defence policy is focused on the further integration into the structures of the North Atlantic alliance (NATO) and on the harmonization of national defence planning with innovations in the allied defence planning process. The Republic of Croatia has also made its contribution to other important processes within the framework of the alliance that were decided upon at the NATO summit in Lisbon. These processes include reform of military structures, agency reform, ballistic missile defence and strengthening cooperation with Russia.

Within the framework of defence policy the development of the Common Security and Defence Policy was closely monitored. The defence system gradually prepared for competent and responsible assumption of future member obligations, through inclusion in activities of EU defence bodies open to candidate countries, through participation in EU operations and the EU Battlegroups project, as

4 well as through declaration of forces for the capability catalogue. Integration into NATO and participation in activities by EU defence bodies are compatible processes that understand a mutual approach and standards. They are in complete harmony with the choice made by the Republic of Croatia and its allies to develop singular forces for all missions and tasks.

The final draft of the Strategic Defence review was developed and adopted by the Strategic Defence Review Council on July 1 st , 2011. Considering the delay in the adoption procedure that followed, debate and final consultations regarding the document were reopened in order for it to finally be adopted by the Government of the Republic of Croatia. The Strategic Defence Review has an aim to provide an evaluation of: the state of defence capabilities, development and organization of the defence system and determine needs for reform or adjustment of the defence system to conditions in the security environment, while it also provides the framework for the drafting of a new Armed Forces Long Term Development Plan.

Work still continues on maintaining and developing defence capabilities defined in planning documents, as well as improving management processes. The basic planning orientation to further enhance deployment capabilities of the CAF has been retained, i.e. training of deployable and sustainable forces declared for NATO led operations in accordance with available financial resources.

The Republic of Croatia continued to participate in international operations under the leadership of NATO, the EU and the UN, providing a contribution to efforts intended to build peace, stability and security in the world. Experience gained in these operations is being systematically incorporated into doctrinal documents and is being used in training.

International defence cooperation was conducted through bilateral and multilateral activities related to: the development of defence capabilities of the Republic of Croatia, full integration into NATO and the EU, cooperation in strengthening stability, security and trust in south-east Europe, and active involvement in bodies and forums of international organizations and initiatives.

5 The Republic of Croatia provides its contribution to international security through bilateral defence cooperation, especially with NATO members and countries in the region, as well as with other countries from the eastern European, central European and Mediterranean areas, with a special emphasis on regional security, cooperation in operations and development of capabilities.

The Republic of Croatia provides support for stabilization in the region by actively participating in the EULEX and KFOR missions and operations in the Republic of Kosovo.

Cooperation with neighbouring countries, especially Bosnia & Herzegovina and Montenegro, who aspire to NATO membership, was as previously focused on support for their defence reforms.

The most significant bilateral partners over the past year were the USA, Germany, Poland and Austria. Cooperation with these countries was conducted at all levels and in numerous fields, primarily in the achievement of force goals, cooperation in operations, within the framework of EU Battlegroups, in the field of training and education, through military-technical cooperation, service cooperation and cooperation of special units in the fight against terrorism and proliferation of weapons of mass destruction.

Bilateral cooperation with neighbouring Partnership for Peace member countries was conducted through education at all levels in accordance with the levels of military education, training and military diplomatic education in the Republic of Croatia and the sharing of Croatian experiences on the path to Euro-Atlantic integrations.

Multilateral defence cooperation was conducted within the framework of international organizations, regional initiatives and forums, especially NATO, the EU, the UN, the OSCE, the South-Eastern Europe Defence Ministerial – SEDM, the RACVIAC Centre for Security Cooperation, South East European Clearinghouse SEEC, the American Adriatic Charter, the Adriatic-Mediterranean Orientation and Multinational Land Forces.

6 Military Strategy

The Croatian Military Strategy (hereinafter referred to as the Military Strategy) is a document based on the Croatian Constitution, the National Security Strategy and Defence Strategy of the Republic of Croatia. It refers to the CAF as the fundamental defence component of the Croatian Defence System.

The Military Strategy provides the concept of development, modernization and equipping for the Armed Forces as well as the concept of military skill development and application of achievements in military techniques and technologies. It clearly shows the position and role of the CAF. Development of the CAF is based on improvement of existing skills, their expansion and the building of new ones.

The Military Strategy recognizes new military and security challenges, so that along with traditional and non-traditional tasks, the CAF prepare to defend in the case of possible differing transnational and asymmetric threats.

The Military Strategy defines the structure and size of the CAF and the place, role and tasks of the services. Modular and professional development of forces and capabilities are important determinants of the CAF, needed to achieve defence.

The Croatian Armed Forces consist of:

 The CAF General Staff - defined as a joint headquarters under whose direct command are all three services of the Armed Forces: the , the and the and Air Defence;

 The Support Command;

 The Croatian Military Academy

 Sub-staff Units

In accordance with current threat and risk assessments, the focus of activities in the CAF is directed toward the development and improvement of capabilities. The CAF increase the effectiveness of their services, branches, specialties and units, and at the same time develop capabilities tailored to requirements for participation in joint

7 operations of the international community. Special attention is given to training and preparation for international peacekeeping and other operations.

15.1.2. National Defence Planning Procedures

Defence planning is a continuous and systematic planning activity conducted by government bodies, bodies of state administration and the CAF in the area of defence. This activity defines, coordinates, elaborates and adopts general and specific strategic objectives within the jurisdiction of all planning incumbents within the Ministry of Defence (MOD) and CAF. The following participate in the defence planning process in accordance with their jurisdictions: the President of the Republic of Croatia, Croatian Parliament, the Croatian Government, the MOD, other ministries and state institutions.

Defence planning procedures in the MOD and CAF are defined by the Regulation on the Manner of Planning, Programming, Development and Implementation of the MoD Budget that was adopted in February 2003.

The CAF Long Term Development Plan 2006 – 2015 was adopted in Croatian Parliament in July 2006 and subsequently elaborated through implementation plans in six functional areas: Personnel Management, International Military Cooperation, Equipping and Modernization, Property Management, Strategic Communications Networks and Information Technology of the MOD and CAF as well as Research and Development.

Adoption of the Strategic Defence Review that will be the basis for the development of a new CAF Long Term Development Plan is in progress.

Levels of defence planning are:

 Strategic Planning - a component of defence planning in the framework of which legislative and executive government bodies define the security and defence requirements of the Republic of Croatia as well as methods of ensuring security and defence requirements. Strategic planning documents are: the National

8 Security Strategy, the Defence Strategy, the Military Strategy and the Strategic Defence Review .

 Developmental Planning - a component of defence planning within which, in the long term and mid-term, the building, development and maintenance of personnel and material defence capabilities are created. Development planning documents are: The CAF Long Term Development Plan , which covers a 10 year period and the MOD and CAF Mid-Term Development Plan that covers a period of 6 years.

 Operative Planning - a component of defence planning within which the management of human and material resources is conducted, with an aim to realize strategic and development planning as fully and consistently as possible. Operative planning most directly ties planning functions with programming and budget development. Operative planning documents are: the Annual Military Priorities, Annual Defence Planning Guidance, the Armed Forces Plan, and the Annual Report on the Readiness of the Defence System, the Conduct of Personnel Policy and the Overall State of the Armed Forces.

Programming

Programming is a continuous process which connects planning, budget development and implementation through allocation of resources according to adopted plans that lead directly to the budget development. In Programming, adopted plans are translated into programs, i.e. projects and activities are translated through the main budget categories, in accordance with desired capabilities and priorities defined in the planning phase. In Programming alternative methods of goal achievement are also defined and analyzed, differing options of goal achievement are evaluated in relation to possible costs and benefits, while the effects of assigned resources are also analyzed in relation to the planned dynamics of goal achievement.

Institutions Included in the Defence Planning Process

The President of the Republic of Croatia is the Supreme Commander of the CAF. The President endorses the proposed Defence Strategy of the Republic of Croatia and the proposed Defence Plan of the Republic of Croatia . The President also adopts the

9 Military Strategy , the CAF Plan of Use , the Decision on the CAF Size, Composition and Mobilization Development and the Decision on the Military-territorial Division of the Republic of Croatia .

Croatian Parliament adopts the Defence Budget as part of the State Budget, which is one of the elements of democratic parliamentary control. Croatian Parliament adopts the National Security Strategy , the Defence Strategy and the CAF Long Term Development Plan .

The Government of the Republic of Croatia proposes the Defence Budget as a part of the State Budget. The Government also proposes the Defence Strategy and the CAF Long Term Development Plan to the Parliament. The Government submits the Annual Report on the Readiness of the Defence System, Implementation of Personnel Policy and the Overall State of the CAF . The Government also adopts the Defence Plan of the Republic of Croatia and the Strategic Defence Review .

The Ministry of Defence defines, coordinates, develops and conducts defence policy. It is responsible for the development of draft proposals for the following documents: the Defence Strategy and the Defence Plan of the Republic of Croatia as well as the development of the Annual Report on the Readiness of the Defence System, Conduct of Personnel Policy and the Overall State of the CAF . It is also responsible for the development of the CAF Long Term Development Plan . The Ministry of Defence gives its endorsement to the proposed Military Strategy of the Republic of Croatia .

The CAF General Staff develops proposals for the following documents: the Military Strategy , the CAF Plan of Use , and the Decision on the CAF Size, Composition and Mobilization Development . The CAF General Staff also participates in the development of the Defence Strategy and develops the Annual Military Priorities document.

The Defence Council discusses the fundamental documents in the area of defence, it considers the work of government bodies and bodies of local self-government in the field of defence, monitors the implementation of defence system reform and other issues as needed. A session of the Defence Council is called by the President of the Republic,

10 with the concordance of the Prime Minister, while issues that will be considered by the Council are jointly determined.

The Council consists of the President of the Republic of Croatia, the Croatian Prime Minister and the Parliament Speaker, the Ministers of Defence, Foreign Affairs, the Interior and Finance, the CAF Chief of Staff, the Head of the National Directorate for Protection and Rescuing, advisers of the President of the Republic for National Security and Defence, the Head of the Office of the President and the Head of the Military Cabinet of the President of the Republic.

15.1.3. Personnel Management Policy

Personnel management policy is implemented through four main program areas: the Personnel Recruitment Program, the Professional Development Program, the Personnel Support Program and the Program for Personnel Transition and Separation. All four programs are a complete entity and encompass civilian and military personnel. The main task of the personnel management system is to fulfill the needs of the military organization for quality personnel while at the same time providing the proper support for each member of the Armed Forces.

The main development goals in the field of personnel resource management are the achievement of a fully professional personnel structure within the framework of targeted numerical personnel sizes and structures, as well as the establishment of a singular personnel management system, which will be achieved through the successful realization of projects within the framework of the Personnel Management Implementation Plan for 2006 – 2015.

The targeted numerical size of the CAF active component is 16000 military personnel and 1600 civilian personnel. The total numerical size of the armed forces on December 31 st , 2011 was 18020 (15728 active military personnel and 2292 civil servants).

The Personnel Recruitment Program is a constant process of recruitment, selection and admission of personnel, which ensures staffing of positions in the CAF with the best candidates and is conducted in accordance with long-term plans and needs of the

11 defence system. The admission of up to 110 officers and 400 enlisted has been planned, in accordance with the Military Personnel Recruitment Plan for 2011.

Realization of the Recruitment Plan for 2011 was 103%.

Professional development is conducted through progressive and successive military and functional education, assignment to differing duties, self-development and through advancement in service and promotion in rank.

Through professional development the military system enables the individual to achieve, maintain and develop capabilities, knowledge and skills needed for the successful conduct of assigned duties.

A new regulation was adopted on the standards of professional development and the procedures for determining inability of officer for further professional development, as well as a regulation on standards of professional development and procedures for determining inability for further professional development of soldiers and NCOs.

Personnel support is directed at satisfying the personal needs of individuals and covers the areas of pay and other material compensation, housing, health care, care for the family, psychological support, rest, holidays and free time, recognition of contributions and merits through awards and citations and preparations for the end of military careers. The purpose of personnel support is to raise the living standards of individuals, which directly affects recruitment and maintenance of quality personnel and the professional development of all personnel categories.

Separation of personnel was conducted according to the Personnel Separation Plan for 2011. The goal was to choose, prepare for separation and separate 650 personnel (600 active military personnel and 50 civil servants). Separated personnel were primarily those that do not fulfill the basic health criteria for active military service and personnel that have an inadequate level of education and are not able to further professionally develop.

Realization of the Personnel Separation Plan for 2011 was 110%.

12 In 2011, 600 candidates were chosen and assigned to voluntary conscript service.

13 15.2. FORCE PLANNING

15.2.1. Size, Structure and Capabilities of the CAF

Organization and Command of the CAF

The organization and command of the CAF are defined by the Constitution of the Republic of Croatia , the Defence Law and the CAF Service Law . The President of the Republic of Croatia is the Supreme Commander of the CAF. The MOD is managed by the Minister of Defence. In accordance with the Constitution of the Republic of Croatia, democratic control over the armed forces is exercised by Parliament, as the representative body of citizens and the incumbent of legislative authority in the Republic of Croatia, indirectly and through responsible bodies – the Defence Council. The Defence Law arranges the jurisdictions of Croatian Parliament, the President of the Republic of Croatia and Supreme commander of the CAF, the Croatian Government and the MOD in relation to the defence system overall, including jurisdictions regarding democratic control over the armed forces.

The CAF General Staff has been organised within the MOD, headed by the Chief of the CAF General Staff, who is above the CAF commands and units. The Chief of the CAF General Staff answers for his work to the President of the Republic and the Minister of Defence. In the event of a direct threat of war, or in the event of war, the President of the Republic, as the Supreme Commander directly commands the CAF through the Chief of the CAF General Staff.

The CAF have four fundamental missions: protection of the sovereignty of the Republic of Croatia, defence of the Republic of Croatia and its allies, participation in crisis response operations abroad, participation in confidence and security building measures and assistance to civilian institutions in the country. They prepare and train for the conduct of all types of armed combat and have a peacetime and wartime structure. The peacetime structure consists of personnel serving in the CAF (active military personnel: officers, NCOs, enlisted and conscripts; civilian personnel; civil servants and civil employees). The wartime structure, besides the peacetime structure, also includes members of the CAF reserve component.

14 The CAF are organized into staffs, commands, units and organizations, and they consist of services, branches, and specialties.

The Armed Forces are a significant support element of foreign policy, contributing to the development of good neighbourly relations and also to global stability and security. They devote significant attention to the development of capabilities needed for participation in international operations.

Structure of the CAF

Services of the Croatian Armed Forces:

 The Croatian Army – the most significant and numerous component of the CAF. It is responsible for the conduct of defence operations, independently and with the participation and support of other CAF services. Land forces are responsible for the conduct of joint CAF operations, developing and maintaining balanced capabilities to respond to modern security challenges. The CAF will continue to achieve a ratio of deployable and sustainable forces in NATO-led operations and in accordance with NATO usability targets.

 The Croatian Navy - acts independently and jointly with other services. The role of the Croatian Navy is to defend the integrity and sovereignty of the Republic of Croatia, promote and protect its interests on the , islands and in the coastal region. The Croatian Navy is responsible for and organizes the naval defence of the Republic of Croatia. The Coast Guard is a component part of the Croatian Navy.

The Croatian Navy’s responsibility encompasses the territorial sea, islands, inner sea waters and deep waters over which the Republic of Croatia exercises full sovereignty and sovereign rights for the exploitation of the sea waters and the sea floor. Beside the defence of the Republic of Croatia’s integrity and sovereignty at sea, the Croatian Navy is also included in: search and rescue activities, maritime traffic control, prevention of criminal and other illegal acts by

15 vessels, protection of natural resources and the environment, assistance to ships, assistance during fire fighting activities and during other disaster relief activities.

 The Croatian Air Force and Air Defence – is a CAF service intended to ensure sovereignty over the air space of the Republic of Croatia and to provide air support for other services in conducting their tasks during joint operations. It is responsible for and organizes the Integrated System of Air Defence of the Republic of Croatia. The Croatian Air Force and Air Defence are a part of constantly ready forces, capable of providing a rapid and efficient response to military threats and to participate in the conduct of all tasks.

In the Croatian Air Force and Air Defence adjustments to the structure of the firefighting squadron within the 93 rd airbase after the acquisition of new aircraft were implemented with the filling of crew member positions, while not increasing the numerical structure of the organization. The structure of the Croatian Air Force and Air Defence command was augmented with a section for test flights and control of pilot preparedness.

The structure of the Armed Forces on December 31 st 2011 has been provided in the annex to the exchange of information.

15.2.2. Deployment of the CAF

The overall activities of the CAF were, beside the fundamental task to protect sovereignty, independence and territorial integrity, directed toward achieving a state of capability to conduct other missions and tasks, integrity and interoperability within NATO as well as the development of capabilities to act within EU defence mechanisms.

In accordance with defence policy orientations activities of priority were: cooperation in international operations, conduct of activities in support of civilian institutions as well as planning and execution of military exercises, both national and within the framework of international military cooperation.

The CAF are mostly deployed on the territory of the Republic of Croatia, while a smaller segment is located beyond its borders in international peace operations.

16 During the year 2011, the Republic of Croatia actively participated in 11 international UN, NATO and EU operations where an average of 485 members took part per rotation.

The system of choosing and preparing personnel for operations was organised so as to fulfill requirements for levels of preparedness and security of units and individuals for the conduct of all tasks in the field of operations.

In 2011 the CAF were engaged within the framework of EU Battlegroups and the NATO Response Force, which was something new to the entire system that adjusted to new processes and procedures.

On the basis of a decision by Croatian Parliament, during 2011 members of the CAF took part in four NATO operations: ISAF (Afghanistan), KFOR (Kosovo), Active Endeavour (Middle East) and Unified Protector (Libya).

Croatian parliament also passed a decision in May 2011 allowing CAF members that have been assigned to duties in NATO commands, staffs and other bodies to be sent to international NATO led operations in 2011, 2012 and 2013, if required for tasks within the framework of work they do in their duties at those NATO commands, staffs and other bodies.

On the basis of a decision by Croatian parliament regarding the international operation in Afghanistan (ISAF), in 2011 participation of up to 350 members was approved. The total number of CAF members engaged in the ISAF operation in 2011 was 989.

At the beginning of 2011, in conjunction with the NATO training mission in Afghanistan, Croatia assumed the lead nation role in the development and training of the Afghan National Army Military Police, and the organization of the Military Police School. With this Croatia found itself in the role of lead nation in such a project for the first time.

CAF members were deployed at the Military Police School from September 2010 within the 16th HRVCON contingent.

The Republic of Croatia cooperates in the project with countries in the region and in that manner promotes regional defence cooperation and its role as a member of NATO in

17 the region. Members from the armed forces of the USA, Slovenia, Albania, Macedonia and Montenegro took part in the mentor team under Croatian leadership, while preparations are underway for the participation of members from the Bosnia & Herzegovina armed forces within the 19th HRVCON contingent.

According to a Croatian Parliament decision, in 2011 participation of 25 CAF members was approved for the international operation in Kosovo. During 2011 a total of 62 members took part in this international operation, while at the end of December, 22 members were on deployment in the operation. At the beginning of 2011 two CAF members were deployed to the operation command on duties as assistant Chief of KFOR Operations Headquarters and as an administrative NCO.

Within the framework of Operation Endeavour the Republic of Croatia provides support for the exchange of information on maritime traffic on the Adriatic Sea.

Upon the adoption of the necessary decisions (by the Croatian Parliament, Government, President and Minister of Defence) and an order by the Chief of the CAF General Staff, in June 2011 two members of the Croatian Air Force and Air Defence were deployed to the Unified Protector mission on duties as staff officers.

Based on a decision by the NATO North Atlantic Council, operation Unified Protector was completed on October 31st 2011, which ended the engagement of Croatian officers in that operation. At the same time the Republic of Croatia donated medical materials from CAF reserves in conjunction with providing humanitarian aid to the population of Libya. As of this year the Armed Forces began engagement in NATO Response Forces. During the beginning phase the Republic of Croatia is participating with smaller forces within the framework of the Response Force Pool.

A total of three members participated in the ATALANTA operation. The Republic of Croatia continues to review the possibility of additional engagement and accordingly is continuing negotiations with bilateral partners regarding the additional deployment of officers on ships involved in the operation.

18 The Republic of Croatia has continued to provide logistical support to the EU operation Althea and the civilian mission EUPM (European Union Police Mission) in Bosnia & Herzegovina as in previous years.

During 2011 the Republic of Croatia participated for the first time in an EU Battlegroup – the Nordic Battlegroup 1/2011 that was in a state of readiness from January 1st, 2011 to June 30th, 2011. On the basis of an agreement with the Kingdom of Sweden (the lead nation), inclusion in the Nordic EU Battlegroup, was conducted with engagement of transport helicopter forces for medical evacuation along with medical evacuation teams.

During 2011 the Republic of Croatia continued preparations for participation in the EU Battlegroup under the leadership of Germany that will be in a state of readiness during the second half of 2012. Contributions within this battlegroup will include the engagement of close to 250 CAF members.

Based on a Croatian Parliament decision, in 2011 CAF members participated in seven international UN operations: UNMOGIP (India / Pakistan), MINURSO (Western Sahara), UNMIL (Liberia), UNFICYP (Cyprus), UNMIS (Sudan), UNDOF (Golan Heights), and UNIFIL (Lebanon).

In August 2011 the participation of CAF members in the UNMIS operation in Sudan ended following the end of the mandate. Over the past year the Republic of Croatia deployed a total of 332 CAF members to UN international operations in several rotations as military observers, staff officers or units. At the end of 2011 there were 23 officers in six UN peace operations at individual duties as military observers and staff officers while 93 members were deployed to UNDOF.

15.2.3. CAF Education and Training

Training at the individual and unit level was conducted through basic military training, specialist military training and training for international military operations.

Basic military training was conducted with all members upon admission to the CFA during voluntary conscript service at the Centre for Basic Military Training in Požega, according to the training program.

19 Specialized training was conducted to gain military-expert specialization and to supplement basic military training by gaining the required knowledge and skills in the services, branches, and support services. It was conducted within the Armed Forces services, institutions or units that are responsible for the development of branches, support services and specialties according to the specificity of the CAF services.

Special emphasis was placed on the training of units and individuals for international operations and forces of a declared level of readiness within the framework of NATO, the EU and the UN (ISAF, KFOR, NRF, EUBG, UNDOF), as well as training of personnel for work in NATO staffs and cooperation with neighbouring countries. By successful participation in numerous national and international military exercises, the level of preparedness was constantly raised while interoperability was improved and a suitable degree of readiness of individuals and units was achieved.

Training in the Croatian Army is focused on developing the capabilities of the team, unit and command as a whole, while the development of individual and key personnel capabilities is also targeted. Individual training is conducted in home units, branch units and training centers, while mutual training is conducted at military training grounds (exercise grounds and shooting ranges), at the Simulation Center and the Center for Combat Training.

The focus of training was to maintain the achieved level of readiness and achieve readiness for participation in international operations.

In the Croatian Air Force and Air Defence, conduct of training ensured the optimum level of combat readiness in the control and protection of Croatian airspace. Readiness to conduct humanitarian operations in the provision of assistance to civilian society in the event of natural or technological/technical disasters was also maintained.

Intense flight training of military pilots and aircraft crews was conducted in accordance with requirements for development of planned capabilities. The Croatian Air Force and Air Defence also conducted training of aircraft-technical and technical personnel for flight service and maintenance as well as personnel for radar systems.

20 In the Croatian Navy the required level of preparedness was maintained while development of individual capabilities was conducted through courses with the focus of training being on the implementation of force goals. Members were trained for functional duties in organizational units of the Croatian Navy through courses, conditioning and specialist training. Members of the Croatian Navy were also trained at training centres of other services.

The conceptual-normative framework of education is defined through the Concept of Education for the Needs of the Armed Forces within which most of the completed projects and project tasks in specific fields of education are developed, while short-term objectives have been determined by the Training Guidelines .

Training for functional duties in organizational units of the Croatian Navy was conducted through courses and special training. The necessary level of preparedness has been retained while the capability to execute special tasks has been increased through the conduct of courses. In addition to the implementation of regular training activities the members of the CAF have successfully participated in numerous military exercises abroad. They have also organized and implemented exercises in the Republic of Croatia.

Training of personnel in the system of military education in the Republic of Croatia was carried out in service schools for the service branches and specialties, and at the Croatian Military Academy “Petar Zrinski” for the needs of the joint levels of command. A total of 1777 students completed successive progressive and functional education in 2011.

The project "Cadet" is a model of civil-military education where officer candidates are trained, for the combat arms and combat supports in all three services and represents the primary form of education and scholarship for career officers. Currently a total of 226 cadets are being trained, while during 2011, 29 completed their education. Also, 44 students are enrolled in the education program through military scholarships.

21 147 members of the CAF and MOD completed various forms of successive progressive and functional education abroad during 2011.

In 2011 fourteen members of the Armed Forces and the Ministry of Defence successfully completed functional training programs under the IMET program (International Military Education and Training).

Professional development in the use of foreign languages is an important element in the processes of the defence system’s integration into NATO that significantly contributes to the process of acquiring knowledge and skills while at the same time contributing to interoperability in the conduct of operations. Members of the CAF and MOD improved their English, German, French and Italian language skills at the “Katarina Zrinski” School of Foreign Languages, at other language schools in Croatia and abroad.

Professional development and education courses for duties were conducted as well as certification of acquired knowledge.

Activities related to the civilian education of Armed Forces and Ministry of Defence members were conducted at civilian education institutions.

15.2.4. Equipping and Modernization

Priorities in project financing have been determined by Force Goal requirements and needs for the fulfillment of basic CAF missions and tasks.

Based on a contract with the PATRIA consortium from Finland and the ðuro ðakovi ć – Specijalna vozila” company from Slavonski Brod, the production of the first base armoured vehicles, AMV 8x8, began in 2009 and the realization of the project continued in 2011. By the end of 2011 the consortium delivered 67 base armoured vehicles to the Ministry of Defence. By the end of the first quarter in 2012 the delivery of the first 14 completed combat vehicles was planned. These vehicles are planned to be used by the CAF for participation in an EU Battlegroup.

Procurement continued for weapons and ordnance, as well as personal protective and combat equipment, (the HS 2000 revolver, an assault rifle calibre 5.56 x 45, combat-

22 protective vests, infantry ammunition, systems for night reconnaissance, tactical goggles for night viewing, etc.).

On the basis of signed contracts, a total of 1990 assault rifles were delivered from the “HS Produkt” company from Karlovac over the past two years. The modification of the VHS-D and K assault rifles to the new VHS-D1 and K1 standard is currently being carried out by the producer free of charge.

For training purposes in 2010 the equipping and modernization of the automatic infantry shooting range in Petrinja was carried out while in 2011 the infantry shooting range and military training ground in Bralovac near Knin was also modernized and equipped.

In 2011, 55 vehicles (35 personal vehicles, 10 vans and 10 terrain vehicles) were received for the needs of the Armed forces and Ministry of Defence. They were acquired through the Office for Central Public Procurement in 2010 and delivered in 2011.

15.3. BUDGET INFORMATION

Budget information has been provided in Annexes.

23 III. ANNEXES

1. Organizational Structure of the CAF

2. MOD Budget for Years 2012, 2013 And 2014

3. Changes in GDP, State and Defence Budget from Year 2007 to 2011

4. MOD Financial Plan for 2012 (HRK)

5. MOD Financial Plan for 2012 (EUR)

6. MOD Financial Plan for 2012 (USD)

7. MOD Financial Plan Execution for 2011 (HRK)

8. MOD Financial Plan Execution for 2011 (EUR)

9. MOD Financial Plan Execution for 2011 (USD)

10. Participation of CAF in UN Peacekeeping Missions

11. Participation of CAF in NATO and EU Operations

24

ANNEX 1: ORGANIZATIONAL STRUCTURE OF THE CROATIAN ARMED FORCES

ANNEX 2. MINISTRY OF DEFENCE BUDGET FOR YEARS 2012, 2013 & 2014

2012 2013 2014 ITEM adopted estimation estimation

1. MOD FINANCIAL PLAN-a 4.828.051 4.707.392 4.754.200 u 000 kuna

2012 2013 2014 ITEM adopted estimation estimation 1. MOD FINANCIAL PLAN 642.028 625.983 632.207 in 000 EUR, 1 EUR = 7,52 kn, middle rate 20.3. 2012 Croatian National Bank

2012 2013 2014 ITEM adopted estimation estimation 1. MOD FINANCIAL PLAN 845.543 824.412 832.609 in 000 USD, 1USD=5,71 kn, middle rate 20.3.2012. Croatian National Bank

ANNEX 3. - CHANGES IN GDP, STATE AND DEFENCE BUDGET FROM YEAR 2007 TO 2011 (in millions of Kuna)

SHARE OF DEFENCE BUDGET DEFENCE YEAR GDP STATE BUDGET in STATE BUDGET in GDP-u BUDGET 1 2 3 4 5=4/2*100 6=4/3*100

2007 314.223 111.051 4.452 1,42 4,01

2008 342.159 118.584 5.590 1,63 4,71

2009 335.189 120.552 5.116 1,53 4,24

2010 334.564 121.442 4.747 1,42 3,91

2011 343.437 122.311 5.089 1,48 4,16

ANNEX 4. MOD FINANCIAL PLAN FOR 2012 (HRK)

ANNEX 5. MOD FINANCIAL PLAN FOR 2012 (EUR)

ANNEX 6. MOD FINANCIAL PLAN FOR 2012 (USD)

ANNEX 7. MOD FINANCIAL PLAN EXECUTION FOR 2011 (HRK)

ANNEX 8. THE MOD FINANCIAL PLAN EXECUTION FOR 2011 (EUR)

ANNEX 9. MOD FINANCIAL PLAN EXECUTION FOR 2011 (USD)

ANNEX 10. – PARTICIPATION OF CAF MEMBERS IN UN PEACEKEEPING MISSIONS

Number of CAF Military Personnel Peace Mission MILITARY STAFF OFFICERS UNIT OBSERVERS 1. UNMOGIP - India/Pakistan 18 - - 2. MINURSO - West Sahara 14 - - 3. UNMIL - Liberia - 4 - 4. UNFICYP - Cyprus 4 - - 5. UNMIS - Sudan - 7 - 6. UNIFIL - Lebanon - 2 - 7. UNDOF - Golan Heights - 2 281 TOTAL by CATEGORIES 36 15 281 TOTAL 12 0

ANNEX 11. DEPLOYMENT OF CAF MEMBERS IN NATO and EU OPERATIONS

NATO Operations and Military Missions

Number of CAF Military Operation Type of operation Personnel by Rotation

1. ISAF - Afghanistan 319/330/340 Military Operation

2. KFOR - Kosovo 20/20/22 Military Operation

3. OUP - Libya Military Operation 4. OAE - Mediterranean Fight against international Sea terrorism.

EU Operations

Number of CAF Military Operation Type of operation Personnel

1. EU NAVFOR 3 Military Operation

Somalia (ATALANTA)

2. ALTHEA/B&H Military Operation

3. EULEX KOSOVO Civilian mission