Milanović in Knin: Interest on Public Debt Exceeds Defense Spending
The President opposes increasing defense allocations, deeming the current slightly over 2% of GDP as 'almost sufficient.' Experts warn he has misinterpreted the concept.
The President opposes increasing defense allocations, deeming the current slightly over 2% of GDP as 'almost sufficient.' Experts warn he has misinterpreted the concept.
Interest on public debt has just caught up with the amount Croatia allocates for defense, by President Zoran Milanović's assessment, this means the Ferguson line has been crossed, that critical fiscal alarm he decided to share with the public on August 6, 2026, in Knin. His interpretation of this economic concept, presented at the anniversary ceremony, immediately sparked controversy, as it seems he understood the essence of the rule in a rather specific way.
The Ferguson rule, which the President cited in his speech, warns of the moment when interest on public debt equals the defense budget. "At this moment, Croatia has crossed that line," Milanović stated, suggesting the country finds itself in an extremely sensitive position, and he lumped in significantly more powerful players like the US, France, and the UK. By doing so, he aimed to emphasize that the problem is not exclusively Croatian but part of a much broader global trend.
Instead of, as Commander-in-Chief, demanding greater investments in the Armed Forces, Milanović thundered in Knin precisely against increasing the defense budget. He deemed current allocations, slightly over 2% of GDP, as "almost sufficient," a stance that sits uneasily with the title he holds, especially given the context of global instability.
He arrived in Knin accompanied by the Chief of the General Staff, whom he himself appointed, and who recently stated he is obliged to obey any order that is not extremely illegal without question. Key stakeholders, according to Večernji list, for now tolerate this interpretation of command responsibility, in the interest of maintaining peace at the top of the state.
Beyond economic arguments, Milanović also relied on a well-known rhetorical device, he used Serbian President Aleksandar Vučić as a "joker." Večernji list analyzes that Milanović deliberately reaches for Vučić, knowing that this topic "stirs the public well," just as Vučić invokes Milanović in his appearances for similar purposes. The reciprocal relationship between the two presidents has long become a predictable element of political communication in the region.
