A favorable wind seems to be blowing for the Greek defense industry, though the long-standing “thorns” that continue to hinder its growth have not yet been removed. Its opportunities and weaknesses were the focus of the Athens Defense Conference, organized by the Delphi Economic Forum in collaboration with the Hellenic Foundation for European and Foreign Policy (ELIAMEP). When asked whether the Greek defense industry is well-positioned to achieve its goals, SAAB’s Director of Industrial Partnerships, Michaela Fecko, replied that she believes it undoubtedly is.
For his part, the Swedish Ambassador to Greece expressed the view that the prospects for the Greek defense industry are particularly positive. As he pointed out, Sweden has succeeded in developing one of the strongest defense industries in Europe, emphasizing that a similar path is achievable for Greece as well.
According to him, the current situation presents significant opportunities, as new European financing tools, new forms of cooperation, and “coalitions of the willing” are emerging, through which even smaller countries can play a meaningful role.
At the same time, he emphasized that the message is clear: Greece is seeking a new way to participate in the European defense industry, with the goal of no longer being limited to the role of a “subcontractor,” but rather of actively participating in research, development, and production.
Innovation and domestic production take center stage
Along the same lines, George Panousis, Major General of the Hellenic Defense Innovation Center (ELKAK) / HNDGS, noted that until now, the Armed Forces have sought to develop operational capabilities primarily through procurement. As he noted, in recent years Greece has begun to develop certain technologically advanced systems domestically, covering part of its operational needs.
He emphasized that the real challenge lies not only in developing innovative systems but also in the ability to mass-produce them, noting that this is where the essential link between innovation and the needs of the Armed Forces lies. In this context, he emphasized that ELKAK is now a key new organization, with a mission to develop new operational capabilities through technology.
On the other hand, regarding the country’s defense spending, Vasilis Antoniadis, Managing Director, Senior Partner, and Client Coordinating Officer for the EU Institutions at the Boston Consulting Group (BCG), argued that such spending not only strengthens national security but can also serve as a catalyst for industrial growth. In his assessment, under the right conditions, defense spending could contribute to an increase in Greek GDP, provided that procurement is designed in a way that strengthens the domestic industrial footprint.
At the same time, he emphasized that Greece must develop strong partnerships, avoid fragmentation, and leverage the SAFE program through alliances with neighboring countries facing common needs.
What Are the Long-Standing Obstacles
In general, despite the positive outlook, the Greek defense industry continues to face several obstacles. Anastasios Rozolis, Chairman of the Board of Directors of SEKPY and CEO of AKMON S.A., argued that the country’s main problem is the lack of a long-term industrial strategy.
As he noted, for decades Greece has relied primarily on imports of weapons systems, resulting in a limited domestic production base. He argued that a clear roadmap is still lacking today, while he set a minimum threshold of 25% participation by Greek industry in defense procurement programs, provided this is implemented in practice.
He also called for the creation of a permanent government body to oversee the planning and implementation of the national defense procurement strategy, noting that the country could produce parts of the systems it has agreed to procure, such as fighter jets, the Achilles Shield, and even certain missiles.
In turn, Alexandros Diakopoulos, Executive Chairman and CEO of the Hellenic Aerospace Industry (HAI), pointed out, among other things, that Greece has spent enormous sums on the purchase of weapons systems, without having developed the necessary domestic capability to support them—a fact which, he said, demonstrates the absence of a long-term strategy.
Mr. Diakopoulos argued that initiatives such as the requirement for domestic industry to account for 25% of procurement, as well as the creation of the European Center for Defense Innovation, help create the right conditions for the development of the defense industry.
Nevertheless, he noted that the decision-making process needs to be drastically accelerated, pointing out that today procurement and contracting procedures still take months or even years. As he stated, the defense industry must be able to produce quickly and at low cost.