Greece Deepens Push to Tie Defense Procurement to Domestic Industry

Greece’s effort to link new defense procurement programs with its domestic defense industry is rapidly emerging as one of the country’s most significant business bets in the coming years, as both Greek and international groups compete for positions in multibillion-euro projects.

Defense Minister Nikos Dendias has repeatedly stressed that every major new procurement contract should include substantial Greek participation, not only in production but also in technical support and long-term maintenance of systems.

He has also underlined that the domestic defense ecosystem could secure projects exceeding 10 billion euros through new European defense initiatives and the rise in military spending across Europe. At the center of government planning is a target of at least 25% Greek industrial participation in new programs, a provision that is gradually reshaping procurement practices.

According to market participants, as reported by the Athens Macedonian News Agency (AMNA), this marks a shift away from the traditional logic of offset agreements toward a model based on real production, co-production, know-how transfer, and lifecycle support.

The strategy spans a wide range of sectors, including electronics, software, optics and sensors, unmanned aerial systems and counter-drone applications, military vehicles, shipbuilding projects, as well as follow-on support and maintenance services.

Industry stakeholders say the next two to three years will be decisive, as EU initiatives such as SAFE, EDF and ReArm Europe are activated, while geopolitical pressures are driving higher defense spending among EU member states, according to AMNA.

Greek companies are already seeking to strengthen their position through strategic partnerships, acquisitions and new investments. The shipbuilding sector has also attracted strong interest, with participation in international defense supply chains seen as critical for reviving Greece’s industrial base.

Recent attention has focused on the involvement of Salamis Shipyards in the construction of sections of the French FDI frigate “Amiral Louzeau,” described as a milestone for domestic industry participation.

At the same time, growing momentum in defense technology startups, particularly in drones, artificial intelligence, cybersecurity and anti-drone systems, is drawing increased interest from foreign groups and investment funds.

Source: tovima.com