“Greece is the shield and the southern pillar of Europe,” emphasized the president of the Hellenic Shipbuilders’ Association (HSA) and the ONEX Shipyards & Technologies group, Panos Xenokostas, during his participation in the Waterborne conference held in Athens with the support of the Eugenides Foundation and under the auspices of the Ministry of Shipping and Island Policy.
Mr. Xenokostas outlined the new vision for the Greek shipbuilding industry. He highlighted Greece as Europe’s strategic “breakwater, ” emphasizing that now is the time for an immediate change in European policy in order to safeguard the continent’s autonomy.
Greece as the Southern Pillar
At the heart of the president’s statement was the repositioning of Greece on the European and global maritime map: “We are not merely a country on the map, nor a passive buyer of ships from third-country shipyards. We are the global leader in shipping; at the European level, we have the largest shipping fleet, the largest tugboat fleet, the longest coastline, and borders marked by intense geopolitical tensions. Greece constitutes the southern pillar of security and the central manager of the Mediterranean’s energy routes.”
Mr. Xenokostas explained why the term “southern pillar” is not a rhetorical figure but a geostrategic reality: “Cables, data cables—everything passes through here. Greece is the shield, the gatekeeper of the entire energy and digital security of our region. So Europe must change the way it views Greece, not as a customer of others, but as a manufacturer, designer, and exporter of know-how.”
He added regarding production capabilities: “Europe must promote changes to transform the country into a shipbuilding hub for the wider region. We can design and build submarines, frigates, and corvettes from start to finish. We build tugs and RO-ROs, and we will also build modern LNG-powered ships.”
The “maritime alliance”
The President called for a nationwide mobilization among shipyards, ports, shipowners, banks, and the state: “A united front to impose our own terms—the terms that Europe itself needs—transforming our geographical location from a mere plot of land into ashipbuilding and technological stronghold.”
Mr. Xenokostas looked back on the journey from 2019 to the present, paying tribute to all partners in the ecosystem: “Since 2019, we have all worked miracles. Greece, amidst memoranda and crises, has revived its shipyards. With the Greek government taking a leading role, the U.S. government changing the legislative framework for DFC financing at ONEX, Greek shipowners supporting our shipyards, ATTICA and Greek coastal shipping becoming the catalyst for growth, and the tugboat and port sector coming to close a cycle of prosperity. This is the Alliance of the Sea.”
The results speak for themselves: The ONEX Group has surpassed 900 ship repairs, with a goal of reaching 1,000 by 2026—a number few would have dared to imagine when the shipyards were handed over in a state of complete abandonment.
An End to the “Subcontractor” Model
The president of the Hellenic Shipbuilders’ Association made it clear that the era of “courteous subcontracting” is irrevocably over: “Our country can no longer be a mere buyer, nor are our dreams and national sovereignty limited to percentages of participation in shipbuilding. We can, we want to, and we build ships from start to finish. The other European shipyards must view us as equal shipbuilding partners.”
“We are not here to do sheet metal work. Greece can design, build, refit, and support comprehensive shipbuilding solutions, ranging from merchant ships and specialized vessels to warships and submarines.” Referring to the strategic alliance with the U.S., Mr. Xenokostas emphasized: “The American side provides practical, technological, and strategic support. It is time for Europe to do the same.”
European counteroffensive & institutional reforms
Mr. Xenokostas called on Europe to face up to its responsibilities, demanding immediate measures to accelerate the return of European shipbuilding to the international stage: “We are calling for immediate measures to eliminate the distortions in the European institutional framework that cause unfair competition in favor of third countries—especially in a market that is, by definition, international and globalized.”
He also highlighted a risk that is often overlooked: unfair competition within the EU itself, where the 2–3 largest European shipbuilding groups absorb all defense funds and programs, turning the remaining shipyards into cheap subcontractors: “Shipyards are meant to build ships, to build submarines, not to be at 5%, 10%, 15%. It’s not possible.”
Specifically, regarding the institutional changes required:
- Removal of restrictions on State Aid: “A completely anachronistic institutional framework that favors only third countries. In many respects, it is a 180-degree deviation from reality. It must be updated immediately and become a tool for promoting changes to the regulatory framework governing the operation of European and Greek shipyards.” Regarding environmental regulations in particular, Mr. Xenokostas was blunt: “Europe is right to legislate environmental conditions, but we’ve become useful idiots: we implement them, others don’t, and they end up being cheaper. We’ve labeled as ‘state aid’ what is actually a tool for survival.”
- Establishment of “European & Hellenic Preference”: Tenders that prioritize national, social, and environmental criteria. “It is not nationally or economically acceptable for ferry routes to be subsidized or for Greek ports to issue tenders for tugboats, with companies receiving Greek and European funds to build ships and tugboats in third-country shipyards”. And he explained with figures: “When a project stays in Greece, it’s not just a percentage that stays with the company. Value remains in the national economy. Even if a merchant ship costs, in absolute terms, 30% more at an Asian shipyard than in Greece, the impact on GDP from domestic participation—in jobs, taxes, contributions, know-how, subcontracting, and local development—is much greater than that 30%. It may even return three or four times more to the country than the difference in absolute price. This is real added value for the country. That is why we must recalculate the national and European figures from scratch.”
- Establishment of a European Export Credit Bank & Shipbuilding Recovery Fund: All Asian shipyards have a comprehensive framework of guarantees and loan packages backed by state guarantees. He also called for idle capital and new resources to form a modern Shipbuilding Recovery Fund. “Europe in this sector is moving forward with two engines, but with one turned off: while defense shipbuilding is making progress, albeit haltingly, the commercial and energy sector remains mired in endless discussions. If measures are not taken immediately, the European seas will cease to speak European.”
The commitment
Concluding his institutional remarks, Mr. Xenokostas was categorical: “We are leaving behind the mindset of ‘it can’t be done,’ of ‘it’s impossible,’ and of ‘let them go out of business.’ If demographics are the country’s biggest problem, the skeptics who for years have been saying ‘let the shipyards close’ are just as big a problem because they are condemning the shrinking generations to come to economic stagnation.”
“We are not asking for charity. We demand the tools to build our sovereignty. Europe will either be rebuilt in Greece, or it will sink into dependency.” And he emphasized: “Everything we ask for and propose is not said as an excuse. We are determined and we will succeed, no matter what Europe does. Our proposals have a single goal: to move forward as Europe, all together, further and faster.”
For the new generation
Concluding his institutional statement, Mr. Xenokostas emphasized that the restructuring of the shipbuilding industry is not about the past; it is about creating a modern production base with prospects for the next generation: “The country needs technical education, productive jobs, and a clear development plan. We choose to give future generations tools, skills, and hope.”
A personal moment
In response to a more personal question from the journalist about his journey over the years, Mr. Xenokostas replied: “At first, both in Syros and in Elefsina, I was broken by the look in people’s eyes, the despair, the hopelessness of unemployment and poverty. Hundreds of people, thousands along with their families, who had lost all dignity.
Today, as they all proudly wear their overalls and have regained their lives, their families, and their dignity, they all share the pride of “we did it.” When I walk through the shipyards and greet my workers, their firm handshake and their gaze—that’s what I hold onto. Because I am the son of a worker, whose father was unemployed twice. It’s as if I’m shaking my own father’s hand.”