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On July 17 Croatia signed a 10-million euro ($16-million) deal with the Finnish company, Patria, to buy two second-hand guided missile frigates. The purchase of the two 22-year-old Helsinki class ships is part of Croatia's efforts to modernize its fleet in order to bring it into line with NATO standards. As part of the agreement, Patria will train Croatian sailors, share technology and provide enough spare parts for the next ten years.

This purchase follows on the heels of the North Atlantic Treaty Organization's invitation, this past April, to Croatia, along with Albania, to join the alliance.

Officials hope full accession will happen within a year.

Croatia wants to make its army completely professional by 2014 at an estimated cost of approximately 1.2 billion euros. Under the plans, troop levels would be cut to 16,000 from the current 25,000. By 2010, Croatia will also be required to raise its military budget to 2.0 percent of its gross domestic product from the current 1.7 percent. Last year, Croatia paid Patria 110 million euros for the purchase of 84 armored vehicles.