How Greece can transition from buying security to producing and exporting it.
Babis Papaspyros
The modern reality of today's battlefields highlights an unyielding truth: national power is no longer measured solely by the volume of military procurement, but by the degree of technological autonomy and participation in international production chains.
Greece, through its "Agenda 2030" and European initiatives, must adopt an integrated plan that places the domestic defense industry, state companies, and homegrown talent at the core of national defense. This is the roadmap for a Greece that does not merely buy security, but produces and exports it.
1. Institutional Shielding: Establishing a Ministry or Secretariat for Defense Industry
The complexity of modern defense programs demands centralized, specialized, and continuous administration. Establishing an autonomous State Secretariat or Ministry for the Defense Industry (reporting directly to the Prime Minister or the Ministry of National Defense, as proposed by the Hellenic Aerospace Security & Defense Industries Group (HASDIG) at their February 10, 2026 event, and advocated in my articles for over three year , is the critical first step. This body will ensure strategic coordination, institutional memory, and policy continuity independent of political shifts.
2. White Paper on Defense Innovation & Investment in R&D
Innovation requires a stable horizon. Drafting a 10-year White Paper will define the cutting-edge technologies that must be developed domestically (e.g., anti-drone systems, electronic warfare, AI-based applications, depot maintenance/upgrades of weapon systems, next-generation UAVs/UCAVs, cyber defense, and space technology).
Without robust domestic Research and Development and a dedicated Defence Innovation Hub, the country will remain dependent on foreign technology. Research programs must be converted into industrial products, with a strong focus on dual-use technologies.
3. Human Capital: Reversing Brain Drain & Providing Incentives
The defense industry is highly knowledge-intensive and depends heavily on retaining and recalling top-tier Greek scientists.- Fair Compensation: A specialized salary framework for engineers and technicians, offering pay that reflects the strategic importance of the sector.
- Brain Gain: Tax and professional incentives to repatriate professionals currently working for foreign defense giants.
- Sustainability of State Entities: Meaningful salary upgrades and job stability at Hellenic Aerospace Industry (EAB) and Hellenic Defence Systems (ΕΑΣ). Overhauling the rigid uniform salary scale and resolving pending issue, such as maintaining hazardous duty allowances and signing collective bargaining agreements, is vital to halting the loss of specialized personnel.
4. Dual-Use Technology
Technologies developed for defense must also find applications in the civilian sector, such as drones for firefighting and civil protection, smart surveillance systems, AI, additive manufacturing, lasers, Satelites, and cybersecurity. Promoting a dual-use culture secures university collaboration, ensures investment sustainability, and attracts private capital.
5. Strategic Synergies, European Opportunities & the "Domestic Participation Clause"
Industrial revival requires pairing the public and private sectors while maximizing European programs like the European Defence Fund (EDF), PESCO, and notably SAFE (Security Action for Europe). SAFE offers €150 billion in low-interest loans with a 10-year grace period, maturities up to 45 years, and pre-financing options.
SAFE is more than cheap financing; it teaches us to be ready with joint procurement plans. The true value lies in exporting domestic systems to other EU nations. A prime example is HAI's (ΕΑΒ) "CENTAUROS" anti-drone system, currently under discussion for export to Cyprus and Bulgaria (with Bulgarian interest exceeding 150 systems via joint SAFE programs). Greece must evolve from a buyer into a co-producer and exporter, fully utilizing its allocated €787 million under SAFE, with a view to expanding into the second phase.
- Mandatory Domestic Participation: The Ministry of National Defense's proposed 25% domestic participation rate (2025) is a vital first step. This must be strictly institutionalized, applied to follow-on support/upgrades, and gradually increased to 30–35% to ensure genuine technology transfer and domestic manufacturing share.
- Joint Ventures: EAB and ΕΑΣ should be revitalized through joint ventures with private companies while retaining a 50%+ public stake. The public sector offers infrastructure and experience, while the private sector brings speed, financing, and innovation.
The "National Defense Industry Renaissance Plan" is an imperative for national survival. Legislative implementation must begin immediately within the 2026–2027 window, or the country risks missing the wave of European defense autonomy.
Greece must ensure that innovation ecosystems deliver operationally relevant solutions at speed. Defence ministries simply cannot keep up with that speed
Transitioning to technological sovereignty demands a comprehensive roadmap, sustained R&D & Innovation investment, meritocracy, competitive talent incentives, and trust in Greek minds. Only then will defense cease to be a financial burden and become a driver of national growth and economic outreach.

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