A favorable wind seems to be blowing for the Greek defense industry, without, however, the longstanding “thorns” that continue to limit its development having disappeared. Its opportunities and weaknesses were at the center of the Athens Defence Conference, organized by the Delphi Economic Forum, in cooperation with the Hellenic Foundation for European and Foreign Policy (ELIAMEP). As for whether the Greek defense industry is well positioned to achieve its goals, SAAB’s Director of Industrial Cooperation, Michaela Fecko, replied that she believes it undoubtedly is.
For his part, the Ambassador of Sweden to Greece expressed the assessment that the prospects of the Greek defense industry are particularly positive. As he pointed out, Sweden has managed to develop one of the strongest defense industries in Europe, emphasizing that a similar course is feasible for Greece as well.
According to him, the current juncture creates significant opportunities, as new European funding tools, new forms of cooperation, and “coalitions of the willing” are emerging, through which even smaller countries can acquire a meaningful role.
At the same time, he underlined that the message is clear: Greece is seeking a new way of participating in the European defense industry, with the aim of no longer being confined to the role of the “subcontractor,” but to participate actively in research, development, and production.
Innovation and domestic production at the forefront
In the same vein, Giorgos Panousis, Major General of the Hellenic Center for Defence Innovation (ELKAK) / HNDGS, noted that until today the Armed Forces had sought the development of operational capabilities mainly through procurements. As he stated, in recent years Greece has begun to develop certain technologically advanced systems domestically, covering part of its operational needs.
He stressed that the real challenge is not only the development of innovative systems, but also the ability to mass-produce them, noting that this is where the essential connection of innovation with the needs of the Armed Forces lies. In this context, he underlined that ELKAK now constitutes a new key organization, with the mission of developing new operational capabilities through technology.
On the other hand, regarding the country’s defense spending, Vasilis Antoniadis, Managing Director and Senior Partner and Client Coordinating Officer for the EU Institutions at Boston Consulting Group (BCG), argued that it not only strengthens national security, but can also constitute a driver of industrial development. As he estimated, under the appropriate conditions defense spending could contribute to increasing Greek GDP, provided that procurements are designed in a way that strengthens the domestic industrial footprint.
At the same time, he pointed out that Greece must develop strong partnerships, avoid fragmentation (fragmentation), and make use of the SAFE program through alliances with neighboring countries facing common needs.
What are the longstanding obstacles
In general terms, despite the positive prospects, the Greek defense industry continues to face several obstacles. Anastasios Rozolis, Chairman of the Board of SEKPY and Chief Executive Officer of AKMON S.A., argued that the country’s main problem is the lack of a long-term industrial strategy.
As he said, for decades Greece relied mainly on imports of weapons systems, with the result that it has a limited production base. He argued that today a clear roadmap is still absent, while he described as a minimum threshold the participation of Greek industry at 25% in armament programs, provided that this is implemented in practice.
He also called for the creation of a permanent government body that will undertake 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 aircraft, the Achilles Shield, and even some missiles.
For his part, Alexandros Diakopoulos, Executive Chairman and Chief Executive Officer 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, as he said, demonstrates the absence of a long-term strategy.
Mr. Diakopoulos argued that initiatives such as the provision for participation of domestic industry at a rate of 25%, as well as the creation of the European Defence Innovation Center, contribute to shaping the appropriate conditions for the development of the defense industry.
Nevertheless, he noted that a drastic acceleration of the decision-making cycle is required, pointing out that today procurement and contracting procedures still take months or even years. As he stated, the defense industry must acquire the ability to produce quickly and at low cost.