The European Union’s decision to increase defense spending by €800 billion is opening new opportunities for Greece’s defense industry, allowing domestic companies to compete for a share of European investments.
Greek firms are now undergoing restructuring efforts to better position themselves in this evolving market.
As the EU seeks to reduce its reliance on the United States for defense capabilities, around 250 Greek companies are looking to benefit from the shift.
Among them, 50 are members of the Hellenic Federation of Enterprises (SEV), while key state-owned manufacturers, such as Hellenic Defense Systems (EAS) and the Hellenic Aerospace Industry (EAB), play an important role.
However, structural challenges within Greece’s state-owned enterprises have hindered their ability to integrate into international defense supply chains.
By contrast, METKA, a subsidiary of the Greek industrial group Metlen, has already established itself in the global defense sector. Its facility in Volos is a key production hub for defense systems, contributing components for Patriot missile systems, Leopard 2-Hel tanks, and advanced submarines. Metlen recently announced plans for a new production facility for advanced metal structures, expected to be operational by 2026, with reports suggesting further investments in Volos aimed at developing a specialized defense hub.
The EU’s defense spending increase has also mobilized SEV, Greece’s leading business association. SEV President Spyros Theodoropoulos recently convened a meeting with major players in Greece’s defense industry, including Evangelos Mytilineos (Metlen), Alexandros Diakopoulos (EAB), George Prokopiou (Skaramangas Shipyards), and Panos
Xenokostas (Elefsis Shipyards). The group agreed to establish a task force to map out the capabilities of Greek defense firms, identify European funding opportunities, and explore potential international partnerships. The objective is to present concrete proposals to the Greek government.
One of the key demands emerging from these discussions is the reinstatement of a requirement for Greek companies to contribute at least 30% of domestic defense equipment production. This regulation, which was scrapped in 2010 is seen as essential for strengthening Greece’s defense industry and increasing its share of European defense contracts.
