Success and failures of the Gripen offsets in the Visegrad Group countries

The Soviet-led Council for Mutual Economic Assistance member, Central European countries found themselves in a difficult political and economic situation after the collapse of the Soviet Union. Three post-Eastern Bloc countries formed the Visegrad Group to strengthen their ties to the West, but the need for foreign investment, job creation and technology transfer was urgent.

This is when military modernisation also came into the picture and the counter-trade—as known as offset—as a tool to help these economies. A trade practice which was meant to energise these economies via defence acquisitions linked economic programmes.

Two Visegrad Group member countries, Hungary and the Czech Republic decided to sign offset agreement with the defence firm SAAB to license Gripen fighter aircrafts. This study intends to analyse if these deals were able to help governments to reach their objectives or the two countries were unable to take advantage of the offset programmes.