Greece’s defense industry is in the spotlight, as anticipation builds ahead of the unveiling of the country’s Long-Term Defense Armaments Program (LTDP) for 2024–2035. With Prime Minister Kyriakos Mitsotakis set to present the plan in Parliament on April 4, the initiative is being closely watched both domestically and abroad.
More than just a budget outline, the LTDP is expected to serve as a blueprint for Greece’s defense priorities over the next decade and beyond—one that could significantly reshape the country’s strategic capabilities and redefine the role of its domestic defense sector.
At the heart of this renewed focus is Defense Minister Nikos Dendias’ push to strengthen domestic production and elevate the role of Greek companies in national defense procurement.
Dendias has requested that the General Directorate for Defense Investments and Armaments (GDDIA) ensure that Greek defense industry participation reaches 25% in the new armament program.
However, this ambition has raised significant questions about what, in practical terms, that percentage actually means. Specifically, it remains unclear what base amount the 25% will be calculated on, and which companies will qualify as part of the Greek defense industry.
According to the LTDP, the total projected defense spending through 2035 stands between €25 and €28 billion.
Yet, of that amount, €14 billion has already been allocated to various defense programs, with an additional €5 billion in pending commitments. This means approximately €19 billion is already accounted for, and to date, Greek companies have had minimal involvement—less than 2% participation in these contracts.
This leaves only €6 to €9 billion in uncommitted funds for the remaining period. If the 25% domestic industry target were applied only to this remaining amount, it would translate to a potential share of €1.5 to €2.25 billion for Greek companies—under ideal conditions.
The challenge is further compounded by the uncertainty surrounding the actual number of active defense manufacturers in Greece. While around 250 companies are officially registered with industry associations such as the Hellenic Manufacturers of Defense Material Association (SEKPY) and the Hellenic Aerospace, Defense & Security Association (HASDIG), only 33 are formally recognized as Domestic Defense Industries (DDIs). In practice, estimates suggest that fewer than 40 companies are currently active and operational in the sector.
This ambiguity underscores the urgent need for the Greek government to clearly define which companies will be eligible to benefit from the program and what standards will determine their inclusion. Moreover, the broader issue of national strategy cannot be overlooked. Greece’s official National Defense Industrial Strategy, which serves as the guiding document for defense sector development, has not been updated since 2017.
In the absence of a modernized strategy, efforts to revitalize and involve the domestic defense industry risk being undermined by a lack of clarity and long-term vision.
