“Defense is neither a technocratic option nor an accounting entry for us. It is above all a national affair. It is deeply rooted in the consciousness of the Greek people as a duty, as a priority of national survival,” said the Minister of National Economy and Finance, Kyriakos Pierrakakis, addressing the national delegation on Greece’s participation in the SAFE programme. “The government sees the strengthening of defence as a strategic option of the first line and the Ministry of National Economy and Finance is called upon to support this option by achieving a delicate balance: to armour the country against any external challenge and at the same time to strengthen the daily life of the citizen, because there is no strong defence without social cohesion and conversely there is no social progress without security and stability,” the Minister of National Economy and Finance said, adding that the Ministry of National Economy and Finance is called upon to support this option by striking a delicate balance: to arm the country against any external challenge and at the same time to strengthen the daily life of the citizen, because there is no strong defence without social cohesion and conversely there is no social progress without security and stability,” the Minister of National Economy and Finance said.

“This is a European tool that supports member states in their efforts to move towards common defence procurement through long-term low-interest loans. At a time of increased geopolitical risks, the need for security, stability, and European defence adequacy is crucial, and Greece is participating in this new security architecture with a plan, with determination. It is not doing so as a tail, it is doing so as a sign of initiative,” Pierrakakis said and stressed that participation in SAFE allows for the overall upgrade of the country’s armament planning. Moreover, he said, the planning for the period 2025-2036 initially will rise from 28.8 to 30 billion euros. Annual equipment deliveries will be boosted from EUR 2.3 billion in 2026 to about EUR 2.6 billion from 2028 onwards. “This is not just a numerical figure, it is additional deterrent power for our country, it is growth for the Greek defense industry, it is new jobs, transfer of know-how, productive restart in critical sectors,” Pierrakakis said, stressing that the Ministry of National Economy and Finance is making a second gesture of assistance in this planning to strengthen defense. “The first one was the escape clause, where Greece did not ask for an exemption from European rules to avoid its obligations; it asked for an exemption to meet its mission, and in the process, the rules themselves shifted. It essentially asked for an escape clause where it is achieved, defense spending to be exempted based on the base year 2024 and this is an example of a successful national claim within the European institutions,” the Minister of National Economy and Finance said and stressed that for Greece 500 million euros of additional arms spending will not be counted in the spending rule, because Europe recognizes and accepts that security is a public good common to all and therefore this clause is “a national acquis, it is a victory and a seriousness and proves

Referring to the cooperation between the NAC and MSM export for the establishment of a joint limited company in Lavrion, the minister said that it is a model of strategic partnership, it strengthens the NAC, safeguards the public interest, utilizes European resources, and introduces the Greek defense industry into a new era. The public sector will retain strategic control, while at the same time securing know-how, investment capita,l and access to international markets. Mr. Greece was ranked 5th among the 28 countries participating in the competition. Together with the participation of the European partner, the total amount of the investment will exceed 83 million. CSG’s investment is €50 million to which €33 million from the EU will be added.”

In order for this investment to proceed, he noted, regulations are becoming necessary to resolve key regulatory, licensing and ownership issues, the minister said, adding that the aim of the regulations is to formulate a flexible and functional legal framework that meets the current, urgent needs to strengthen the defence industry. “The strategic requirements of the ASAP programme leave no room for procrastination. On the contrary, they require institutional clarity and speed of implementation. At this juncture, we cannot afford to get lost in unnecessary bureaucracy,” the Minister of National Economy and Finance said, noting that:

* The new framework ensures that the NAC facilities can be used or upgraded without triggering the traditional (environmental and urban planning) licensing procedures, as these are not compatible with the urgency of defence needs at the current juncture.

* At the same time, the current ownership status of the Lavrion Factory Complex is settled as the transition from the National Defence Fund (NDF) to the NDF, the price of which has already been paid by the NDF 40 years ago, is completed.

* In addition, the exemption of NACs from additional operating licenses is maintained which ensures that the necessary expansions and modernization of production lines will proceed with speed.

* Finally, the issue of the legal characterisation of the associated joint stock companies of the NACs, which may be established in the future in the context of similar ventures to the joint company, is addressed so that the NACs are ready to exploit the opportunities offered by the highly dynamic European and international context in the field of the defence industry.

The partnership, as formed, contains strong advantages for our country. The cooperation between the EACs and MSM EXPORT involves the establishment of a joint company in which the EACs hold a majority stake and maintain full control, Mr. Pierrakakis said, stressing that the EACs hold the majority stake (51%). The State will receive the proportionate dividend from the company’s activity. The Slovak MSM of the Czech group CSG holds 49%. This company is one of the largest producers of large-calibre ammunition in Europe and an important player in the European defence industry.

Decisions of strategic importance are subject to mandatory approval by the NCAs, irrespective of the composition of the Board. The CEO is appointed only with the consent of the NACs.

“The agreement clearly does not confer vital rights, but it does establish in explicit provisions the control, ownership and business continuity of the NACs. Infrastructure remains in the State, production is strengthened, the Armed Forces have absolute priority and the State retains absolute ability to intervene whenever required.

Those who claim the opposite, either they simply have not read the agreement, or they deliberately hide the facts,” the Minister of National Economy and Finance said and noted that from the cooperation of the EAC with the Czech CSG through a joint venture, Greece receives:

* Upgrading and utilization of aging infrastructure and equipment.

* Enhancement of the productive capacity of the EACs,

* Creation of new jobs with qualified personnel. It is estimated that more than 400 jobs will be created

* Access to new export markets which are currently inaccessible to the EAFs,

* Multiplier revenues for the NACs through their participation in the profits of the new joint venture company.

“The strategic vision is to transform Greece into a hub of European ammunition production. Lavrion, in this way, will be at the forefront Europe-wide in the production of large calibre ammunition. This agreement strengthens our country.

Ladies and gentlemen,

Greece, a country with a long military tradition and geopolitical maturity, is not surprised. It knows when to prepare and when to lead with initiatives that shield national security and at the same time, give a growth impetus to the Greek economy.

Especially when some continue to invest in revisionist rhetoric and practices, often seeking to challenge our internationally guaranteed sovereign rights.

Our response is calm, decisive, and nationally responsible,” he said, stressing that “any initiative that enhances our defense capability and upgrades our industrial and strategic self-sufficiency is an initiative of national responsibility.”