Greece’s defence industry may be facing its greatest opportunity in decades. The country’s 12-year, €30 billion defence procurement programme, Europe’s renewed focus on defence backed by multiple funding mechanisms, and fresh investments from major Greek industrial groups are creating the conditions for a strong domestic defence industrial base for the first time in years.

Whether this opportunity is fully realised will largely depend on the formal implementation of the government’s proposed 25% Greek industrial participation requirement in major defence contracts, beginning with the flagship “Greek Dome” air and missile defence programme.

Recent developments have shown that Greek companies are not only eager to play a leading role but also possess the capabilities to do so. However, industry leaders stress that success is far from guaranteed. They argue that Greece now needs a coherent national strategy, close cooperation between the government, the Armed Forces and the private sector, along with sustained investment in innovation and export competitiveness.

Strong presence at Eurosatory 2026

The Greek defence industry’s participation at Eurosatory 2026, held in Paris from 15 to 19 June, marked one of its strongest and best-organised appearances in recent years.

The focal point was the Greek National Pavilion, organised by the Hellenic Manufacturers of Defence Materiel Association (SEKPY), which hosted fourteen Greek companies.

The exhibitors showcased innovative solutions in unmanned systems, advanced composite materials, satellite communications, electronics, artificial intelligence and defence manufacturing, highlighting the growing capabilities of Greece’s defence ecosystem.

Beyond the national pavilion, several major Greek companies also exhibited independently, holding meetings with government delegations, global defence contractors and procurement agencies.

Major investments from METLEN and GEK TERNA

Recent announcements by METLEN and GEK TERNA demonstrate that Greece’s defence industry is now attracting interest well beyond traditional defence manufacturers.

METLEN recently inaugurated the fourth production facility of its M Technologies Defence Hub in Volos. The new plant forms part of an integrated industrial complex dedicated to manufacturing advanced defence systems and subsystems, with the aim of participating in major European defence programmes while strengthening Europe’s strategic defence autonomy.

At the same time, GEK TERNA formally entered the defence sector by signing two major cooperation agreements.

The first, with Airbus Defence and Space, focuses on military satellite communications and the protection of critical infrastructure.

The second, with Rheinmetall, establishes a strategic partnership for the development of new tactical land systems while strengthening Greece’s domestic defence industrial base.

The push to formalise the 25% rule

The growing momentum among Greek defence companies has once again brought to the forefront the government’s proposal requiring at least 25% Greek industrial participation in every new defence procurement programme.

The measure represents one of the most significant initiatives in recent years to support domestic defence manufacturing, and Greece’s General Directorate for Defence Investments and Armaments (GDDIA) has already made its implementation a key priority during recent negotiations.

However, despite broad industry support, concerns remain because the proposal has yet to become law and currently exists only as an administrative guideline.

For this reason, the industry is calling for the measure to be formally legislated, making it legally binding rather than dependent on individual contract negotiations.

Companies also want clear and measurable criteria to ensure that the 25% requirement reflects genuine industrial production, technology transfer and manufacturing capacity rather than low-value services.

Speaking in Volos alongside Defence Minister Nikos Dendias, METLEN Chairman and CEO Evangelos Mytilineos proposed introducing a bonus system under which suppliers exceeding the minimum Greek participation threshold would receive additional points during tender evaluations.

SEKPY President Tasos Rozolis has likewise stressed that the initiative requires a transparent legal framework with clear rules and effective monitoring mechanisms. According to him, the 25% requirement should strengthen supply security, strategic autonomy and operational readiness through real domestic industrial production rather than accounting for intangible activities that create little added value.

The “Greek Dome” moves toward approval

The debate has intensified because industry leaders do not want Greece to miss another opportunity, as they believe happened during the previous €15 billion defence procurement programme, which centred largely on the acquisition of Belharra frigates and Rafale fighter jets.

Market estimates suggest that had substantial Greek industrial participation been required, between €3.5 billion and €4 billion could have flowed back into the Greek economy.

More recently, the planned acquisition of a fourth Belharra frigate, valued at around €1 billion, and the purchase of Elbit Systems’ PULS rocket launchers, worth approximately €650 million, are expected to become the first major defence contracts guaranteeing at least 25% Greek industrial participation.

Naval Group has already announced that it works with around 70 Greek companies, many of which have become permanent suppliers within its global supply chain.

The next major procurement programme is the “Greek Dome”, also known as the “Shield of Achilles,” a nationwide integrated air and missile defence system with an estimated value of €3 billion.

Greek industry participation in the programme is expected to reach approximately €750 million.

According to newmoney.gr, negotiations between Israeli defence companies and Greece’s procurement authorities have secured a commitment to at least 25% Greek industrial participation, covering both manufacturing work and technology transfer.

Companies expected to participate include METLEN, Miltech, Scytalys, Akmon, Salamis Shipyards, GEK TERNA, as well as the Hellenic Aerospace Industry (HAI) and the Hellenic Defence Systems (EAS). The list is expected to expand during the programme’s three-year implementation.

The programme has already received approval from the Legal Council of the State. Following the final signatures from Greece’s military chiefs, it is expected to be forwarded to Defence Minister Nikos Dendias for final approval before being submitted to the Government Council for Foreign Affairs and Defence (KYSEA) for its final decision.

Although the next KYSEA meeting is reportedly scheduled for 23 July, efforts are underway to bring the decision forward, with 6 July currently seen as the most likely date, as the programme is considered mature and virtually all major technical and legal issues have now been resolved.

With the Greek Dome now just one step away from final approval, the coming weeks are expected to provide the first real test of whether the government’s commitment to 25% Greek industrial participation will be implemented in practice.

For Greece’s defence industry, the stakes extend well beyond participation in a single €3 billion programme. The objective is to establish a new cooperation model that could shape every major defence procurement project over the next twelve years.