Slovenia is set to increase its defense spending over the next five years to reach $1.53 billion by 2027, according to GlobalData. The leading data and analytics company notes that the country is now set to meet NATO’s target of spending 2% of its gross domestic product (GDP) on defense.

GlobalData’s latest report, ‘Slovenia Defense Market Size and Trends, Budget Allocation, Regulations, Key Acquisitions, Competitive Landscape and Forecast, 2022-27’, notes that Slovenia is heavily reliant upon its membership of international organizations such as NATO for its security. In order to continue to benefit from the collective defense offered by membership of NATO, Slovenia must remain an active and engaged member of the organization. Meeting the 2% of GDP target is a good way to do so. 2022 was also the first year that Slovenia met NATO’s other spending target, which is where 20% of a country’s defense budget should be allocated to acquisitions.

Madeline Wild, Associate Defense Analyst at GlobalData, comments: “Russia’s invasion of Ukraine has forced states across Europe to reassess their defense spending. Slovenia’s defense market is small, with current spending levels restricting Slovenia’s ability to bolster its defensive strength due to the small acquisition budget on offer. However, forecasted growth means that long term investments into major platforms can be carried out due to payments being split over a multiyear timeframe.”

The country’s growing defense spending is forecast to outpace GDP increases dramatically, rising from 1.5% of GDP being spent on defense in 2022, to 2.2% in 2027. This growth aligns Slovenia with its NATO allies who have also announced budgetary growth in order to meet the threat posed by Russia.

Slovenia can also strengthen its relationships with NATO allies through procurement programs. Industrial collaboration can be beneficial in terms of what it can offer politically and in terms of the provision of military capabilities. Joint procurement programs can help states strengthen their relationships and provide new channels for cooperation and communication.

Wild adds: “One of the major ongoing procurement programs within Slovenia is the acquisition of a C-27J aircraft. This program is part of a larger government-to-government agreement with Italy and will provide Slovenia with greater levels of independence in the aerospace domain. Currently, Slovenia is heavily reliant on its neighbours for air-based capabilities, but the acquisition of a C-27J is a significant step towards meeting Slovenia’s requirement for transport aircraft.”