Rank #86 · Europe
Bosnia and Herzegovina spends roughly $230 million on defence — under 1% of GDP — through the Armed Forces of Bosnia and Herzegovina (AFBiH), a structurally constrained force shaped by the Dayton Peace Agreement's ethnic-quota design. NATO membership aspirations remain stalled; EUFOR Althea, the EU stabilization mission, continues to operate in country, reflecting ongoing international concern about Bosnia's fragile political architecture and the destabilizing rhetoric of Republika Srpska leader Milorad Dodik.
Bosnia's defence budget is among the lowest in Europe as a share of GDP, constrained by the Dayton institutional structure that requires consensus among the Bosniak, Serb, and Croat constituent peoples. The state-level defence budget (~BAM 450M, $230M) funds the joint AFBiH, but Republika Srpska's entity leadership periodically challenges state authority over defence matters. NATO's Membership Action Plan (MAP) was granted in 2010, but Serbian-entity obstruction has blocked further progress. The US has provided modest Foreign Military Financing (FMF) and equipment donations — including surplus M113 APCs and small arms — to help professionalize the AFBiH. Defence spending is unlikely to increase substantially without a political breakthrough.
The AFBiH was formed in 2005 by merging the Bosniak Army of BiH, Croat Defence Council, and Republika Srpska Army. It fields approximately 10,000 active personnel organized into three infantry brigades based in Sarajevo, Banja Luka, and Mostar — one from each entity/people — plus a Tactical Support Brigade and joint service elements. The force retains legacy Balkan War-era equipment: M84 tanks, T-55s, BOV APCs, and towed artillery. Air assets are minimal — a few helicopters for transport and SAR. EUFOR Althea (EU Force, ~1,100 troops) provides a deterrent presence and capacity-building support. The AFBiH contributes to UN peacekeeping in DRC and Central African Republic.
Bosnia has legacy arms manufacturing capacity from the Yugoslav era — particularly in Mostar, Travnik, and Goražde — with facilities producing small arms, ammunition, and explosives. The Hercegovina Arms Factory (HB) and BNT Novi Travnik produce 7.62mm and 12.7mm ammunition. These companies export to regional markets but operate well below Cold War capacity. There is no capacity for aircraft, armoured vehicles, or advanced electronics. The political fragmentation between entities complicates joint procurement and industrial policy. Serbian entity firms have separate ties with Serbian and Russian suppliers, adding complexity to standardization efforts.
Bosnia's primary security risk is internal political fragmentation rather than external military threat. Republika Srpska President Milorad Dodik has systematically challenged Dayton institutions since 2021 — boycotting state institutions, refusing to implement Constitutional Court rulings, and in 2023-24 passing entity-level laws contradicting state sovereignty. The EU and US have imposed targeted sanctions on Dodik. Dodik maintains close ties with Russia (receiving the Russian Order of Friendship medal from Putin) and has signalled openness to Republika Srpska secession — which would trigger severe regional instability. EUFOR Althea's presence provides a stabilization signal. Serbia-Kosovo tensions indirectly elevate regional security concerns.
The EU imposed sanctions on Milorad Dodik in January 2024 for actions threatening the Dayton Agreement framework. EUFOR Althea maintained its 1,100-person presence through 2025, and the EU Council renewed its mandate. Bosnia officially applied for EU membership in 2016 and received candidate status in December 2022; accession chapters began opening in 2024 but progress remains tied to rule of law reforms. The AFBiH participated in NATO exercises under Partnership for Peace in 2024. US FMF deliveries included surplus equipment for engineer and CBRN units. NATO's MAP process remained suspended pending political resolution of entity-level obstructionism.
Bosnia and Herzegovina spends approximately $230 million on defence in 2025 — under 1% of GDP. The budget is constrained by the Dayton Agreement's ethnic-power-sharing structure, which requires inter-entity political consensus.
EUFOR Althea is the EU's stabilization force in Bosnia and Herzegovina, successor to NATO's SFOR. It fields approximately 1,100 troops (drawn from 20+ nations) providing a deterrent presence and support to the AFBiH's capacity development. Its mandate has been renewed annually since 2004.
Bosnia received a NATO Membership Action Plan (MAP) in 2010, but accession has stalled due to Republika Srpska's entity leadership obstructing the required registration of state-level military property — a condition NATO set in 2018. No timeline for NATO membership is currently in view.