According to the plan, the Armed Forces will not have more than 16,000 active military staff, 2,000 civilian staff and voluntary conscripts, and up to 6,000 reservists
Said figures will be achieved in 2009, by which time all conditions must be met to bring in professional staff, abolish military service and introduce voluntary service, said Defence Minister Berislav Roncevic.
The military will retain its three branches and establish a Support Command.
Croatia plans to gradually increase its participation in international peace missions and operations to eight per cent of its land forces.
The key factors to realise the development plan are a real growth of GDP and stabilising money set aside for defence to two per cent of GDP by 2010, said Roncevic, adding that Croatia would thus show it was willing to achieve the defence capabilities required for NATO membership.
The plan also envisaged reducing military real estate from 335 facilities to 218, while the rest will be put to economic use.
Also today, the government sent to parliament a set of guidelines regarding public-private partnership with a view to stepping up the building of hospitals, schools and homes for the elderly.
The government said it was pleased that the first installment in the settlement of the state's debt to pensioners was paid today and pledged it would continue to see that their material position was improved.
Prime Minister Ivo Sanader said the government had secured funds also for the second installment.
The government also gave the northern Adriatic city of Rijeka its support to apply for the third time to organise and host the 2013 Mediterranean Games. The costs of the games are estimated at 232 million euros.