The proposals for the development of the Hellenic Defence Industry, in light of the upcoming announcements regarding the Hellenic Armed Forces’ 12-year armament programme and ReArm Europe, were presented at the press conference of the Hellenic Manufacturers of Defence Materiel Association (SEKPY). The event took place on Monday, 17 March 2025, at the ESIEA building.

In his opening remarks to the attending media representatives, SEKPY President Mr Tassos Rozolis provided information about the Hellenic defence industry. At the same time, he pointed out that there is no competent authority responsible for collecting and validating this data, noting that the available figures have been presented by the General Directorate of Defence Investments and Armaments.

According to the Hellenic Ministry of National Defence, he stated, Greece currently has approximately 400 entities—including companies, research centres, start-ups, and university departments—engaged in defence-related activities, employing over 15,000 people and generating a sector turnover exceeding €1.5 billion.

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Among these entities, 100 are already participating in European Defence Fund (EDF) programmes.This, according to Mr Rozolis, is a success story for the Hellenic Defence Industry. Greece, relative to its population, ranks first in the EU in terms of programme participation and project awards. This year, Greece is involved in 57% of the EDF’s programmes, he highlighted.

Founded in 1984, SEKPY today has 230 member companies within the Hellenic Defence Industry, employing over 14,000 people. However, not all member companies are exclusively defence-oriented; while some focus entirely on defence, others produce goods also used for civilian applications.

Since there is no comprehensive mapping of the sector, SEKPY has initiated a collaboration with the National Documentation Centre, which is now working with the GDDIA to conduct the first-ever mapping of the Greek defence industry, Mr Rozolis added.

The SEKPY president then addressed the issue of procurements, recalling that until 2011, Greek legislation required that for every arms procurement exceeding €10 million, at least 30% of the Domestic Value Added (DVA) had to be certified as produced within Greece. Additionally, compensation and offset agreements accounted for a further 10%, meaning that approximately 40% of each procurement had to be fulfilled domestically.

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However, in 2011, amid the financial crisis, the government at the time decided to abolish all existing industry-support measures and adopt a copy-paste version of the EU’s 2009 Defence Procurement Directive. 

An amendment was introduced in 2019-2020, but the authorities failed to address the core issues of the legislation, despite some improvements. As a result, all current procurements are conducted through G2G agreements and directs awards, as this is the only viable legal avenue. Consequently, every procurement presented to Parliament effectively becomes law, Mr Rozolis emphasised.

He went on to outline SEKPY’s main positions, stressing that they are not trade union demands. Given that Greece is compelled to allocate significant funds to armaments, the State should secure at least 30% industrial returns.

Mr. Rozolis also discussed follow-on support contracts, which are essential for the continued maintenance of key weapon systems, many of which have been in operational service for over 30 years.

As he pointed out, Greece is still operating F-16 aircraft from 1988 and frigates that are over 30 or even 40 years old. It is estimated that the cost of maintaining these defence assets in operational condition exceeds three to four times their original purchase price. In other words, if a ship is purchased for €1 billion, an additional €2 billion will be required over 40 years to keep it operational.

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Mr Rozolis also cited the example of the F-35 procurement, explaining that once a country agrees on the purchase price, any subsequent requests for additional capabilities are unlikely to be granted or will come at unfavourable terms. For this reason, other nations engage in negotiations beforehand

He further highlighted Greece’s involvement in the Stinger, Iris, and other weapons systems, questioning why, given the substantial number of Exocet, Meteor, Mica, and Aster missiles purchased from MBDA, Greece is not a member of the MBDA consortium.

Greece of 10-11 million and with the high technological potential it has could participate in all joint venture programmes. Since eventually we will get the F-35 why not be in the consortium and any other new European battle tank.

Regarding European developments, Mr Rozolis stressed that the current opportunities in Europe occur only once every 50 years, and Greece must seize them. He also reiterated SEKPY’s longstanding call for the establishment of either a Deputy Ministry or a General Secretariat dedicated exclusively to the defence industry.

Finally, he underlined the strategic importance of the ReArm programme in Europe, arguing that the Greek Defence Industry must take advantage of it to develop the necessary infrastructure for the future.

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