The provision for a minimum participation of the Greek defense industry by 25% in the new armament programs of the Armed Forces is emerging as one of the most important development goals of the next decade.
Government, businesses and productive bodies converge in the assessment that the measure can transform a significant part of defense spending, from a fiscal cost into an investment for the Greek economy, creating new productive activity, highly specialized jobs, know-how and stronger export momentum.
The discussion on the substantial participation of the domestic industry in armament programs returned to the forefront on the occasion of the inauguration of the fourth production unit of the M Technologies Hub of METLEN in Volos. The investment provided the occasion to highlight the need to connect major defense procurements with Greek production, at a time when Europe is increasing its defense spending and seeking greater strategic autonomy.
The interest is not limited to the size of the contracts that Greek businesses can undertake. The major objective is the creation of a strong industrial base, capable of participating in the production, maintenance, upgrading and technological evolution of defense systems, keeping a significant part of the added value in the country.
Market players point out that the implementation of the measure can act as a catalyst for new investments in factories, equipment and human resources, while at the same time it will allow Greek businesses to join more easily the international supply chains of major defense groups. Participation in armament programs does not concern only the manufacture of individual components, but can lead to transfer of know-how, development of innovative technologies and strengthening of the extroversion of Greek manufacturing.
In this context, the government has set as a basic objective the incorporation of substantial Greek added value into the new armament programs. The Minister of National Defense Nikos Dendias has made it clear that 25% Greek industrial participation is a basic government choice, underlining that the goal is for a significant part of defense spending to return to the Greek economy through production, investments and the creation of new jobs. As he has stated, the issue is for this percentage to translate into “a real investment in the Greek defense industry” and not into formal or limited-value participations.
The Ministry of Development is moving in the same direction. Minister Takis Theodorikakos described METLEN's investment in Volos as emblematic for the country's industrial reconstruction, noting that strengthening defense production is a basic pillar of the new productive policy. At the same time, he announced the activation of a special regime of the Development Law for defense, with a budget of 150 million euros, aiming to attract new private investments in the sector.
From the industry's side, the chairman and chief executive officer of METLEN, Evangelos Mytilineos, described the government initiative as particularly important, noting that “the time has come for the Armed Forces and the Greek defense industry to come closer together,” as happens in most developed countries. At the same time, he proposed that armament programs providing for Greek participation greater than 25% receive additional scoring during the evaluation of bids, so that domestic production is further strengthened and stronger incentives are created for investments in the Greek defense industry.
METLEN's investment in Volos is a characteristic example of the new momentum developing in the sector. The M Technologies Hub is evolving into a vertically integrated industrial ecosystem, which will host six production units, with the aim of manufacturing advanced defense systems and Greece's participation in major international programs. This specific investment reflects in practice the model that the government seeks to strengthen: high-technology production, export orientation and partnerships with leading international groups.
At the same time, representatives of the Greek defense industry point out that the initiative can gain even greater momentum through a stable implementation framework, which will offer predictability to businesses and facilitate long-term investment planning. In this context, the Association of Greek Manufacturers of Defense Material (SEKPY) has requested that the provision for 25% acquire a permanent legislative character, with clear implementation rules, transparent procedures and an effective control mechanism. As it points out, in this way it will be ensured that Greek participation will correspond to substantial industrial work and not to limited or formal collaborations.
The discussion becomes even more important as the European Union promotes the strengthening of the European defense industrial base and significantly increases the available resources for defense. For Greece, the timing is considered particularly favorable, as it is combined with an extensive armaments program that can create significant domestic added value.
The implementation of the provision for minimum participation of the Greek defense industry in the new armament programs is expected to constitute a key element of the country's new defense and industrial policy. At the same time, the evolution of its implementation framework and the response of the domestic industry will constitute critical factors for the utilization of the investments planned for the coming years.
SOURCE: ANA