The establishment of a high-tech Cypriot Defence Industry is recommended by the Parliamentary Committee on Energy, Trade and Industry, in coordination with the Ministry of Defence.

Ένα ορόσημο για την Κυπριακή Αμυντική Βιομηχανία. Ευχόμαστε να γίνει σύντομα πράξη. #defencecyprus #defence_ecosystem #carie #κσεεκ https://t.co/HKJqzcAIP5

— DEFENCE ReDEFiNED (@Def_Redefined) December 12, 2023

In yesterday’s session, the Ministry of Defence informed the Committee of the actions it is taking to establish a high-tech defence industry using funds under the EU Permanent Structured Cooperation (PESCO).

In his statements upon the completion of the Committee session, the Committee President and DISY Member of Parliament, Kyriakos Hatzigiannis, stated that similarly to the participation of the defence industry of every country in defence armament programs, the Republic of Cyprus seeks to do the same since there are available capabilities.

He added that there are capabilities in terms of research, and technology, but also in respect of the management, maintenance and production of important equipment, while he emphasized that in this effort the state should have a supervisory role, so that there will be no abuse or major exploitations.

Further, he added that it was agreed that this industry sector should be institutionalized and the Ministry of Defence has prepared specific proposals so that a part of the armament purchases would have a share in the local industry. He also stated that the participation of Cypriot high-tech companies in exhibitions abroad should be strengthened.

Also read: BATTLEFIELD ReDEFiNED 2023 | European Defence Initiatives and the Cyprus Defence Industry

According to CNA, and as Mr. Hatzigiannis mentioned, they will meet again in three months to include the institutionalization of this industry sector in certain legislations.

AKEL MP, Kostas Kosta, expressed his party’s position regarding PESCO and said that it refers to the operation of the EU army. Cyprus, he added, should be a bridge of peace and cooperation between the peoples of the region and not a base for foreign armies.

Regarding the high-tech defence industry that is gradually developing, he mentioned that it has a significant turnover exceeding 350 million euros. He noted, however, that Cyprus has been trying for 25 years to create the science and technology park in Pentakomos and has not yet succeeded, whereas Israel has 36 technology parks that contribute significantly to its economy. According to him, the Government should consider how to proceed with this project which is directly related to research and innovation as it is a project that had been cancelled, as he pointed out, by the previous Government.

Dr. Tasos Kounoudis, President of the Cyprus Association of Research and Innovation Enterprises (CARIE), was also invited to the Industry, Trade and Energy Committee of the Cyprus Parliament in order to present its achievements.

Also, in cooperation with the Cyprus Chamber of Commerce and Industry and the Federation of Employers & Industrialists (OEB), together with the support of the Ministries of Defence, Trade and Industry and Finance of Cyprus, CARIE urgently requested the establishment of a legal framework for Industrial Cooperation in Armaments.

In fact, Mr. Kounoudis, after communicating with the editorial team of DEFENCE ReDEFiNED, stated that CARIE is satisfied with all the stakeholders that attended yesterday’s parliament speech. According to him, Cypriot companies have potential which has been proven at the European level. The institutionalization of industrial cooperation in the field of armaments will be a milestone for the creation of new jobs and further development of the domestic industry, with multiple benefits including the security of the supply chain for systems related to the Armed Forces.

Also read: CARIE – GICAN | MoU signed for cooperation in the fields of Security and Defence