Slovenia settles EUR 4.3 million fine for boxer APC withdrawal

Slovenia had to pay EUR 4.3 million for withdrawing from a EUR 350 million agreement to purchase 45 Boxer armoured personnel carriers under the OCCAR programme. The contractual fine has been paid in full, Deputy Prime Minister Matej Arčon told the press after a cabinet meeting, adding that this chapter had now been closed, CE Report quotes STA.

Slovenia’s decision to withdraw from the agreement, which was initially signed in 2018, was influenced by shifting defense priorities and budgetary constraints. The country had committed to purchasing the 45 Boxer armoured personnel carriers as part of its modernization efforts for the armed forces, but a series of political and financial challenges led to a re-evaluation of the deal.

The EUR 4.3 million payment settles the fine imposed under the terms of the contract, and the government now considers the matter resolved. Arčon emphasized that the funds would not impact other planned defense investments, and that Slovenia would continue to focus on strengthening its military capabilities within its financial limits.

The cancellation has drawn mixed reactions, with some criticizing the government’s decision to back out of the deal, while others have supported the move, citing the importance of ensuring that defense expenditures align with the country’s long-term strategic needs.

Slovenia’s military procurement strategy moving forward is expected to involve more careful assessment of costs and benefits, as well as closer collaboration with NATO and other European partners to ensure the country's defense is adequately supported.