New investment opportunities could reshape Greece’s defence manufacturing sector.
ATHENS, Greece. Greece is seeking to strengthen its position in Europe’s defence industry through new investment, technological partnerships and expanded manufacturing capabilities, supported by €400 million in financing agreements signed between the European Investment Bank (EIB) and Greek banks. The initiative comes as European governments place greater emphasis on industrial capacity, technological independence and security cooperation.
The agreements create financing channels for companies involved in defence-related research, production and technological development. According to EIB representative Eirini Botonaki, security and defence have become one of the institution’s eight strategic priorities, reflecting a shift in how European financial institutions approach investment in the sector.
The financing structure distinguishes between large manufacturers and smaller businesses. Major companies can submit investment proposals directly to the EIB, while small and medium-sized enterprises and mid-cap companies can access financial instruments through participating Greek banks. Importantly, the €400 million represents signed financing agreements rather than confirmed expenditure by individual defence manufacturers.
The EIB’s expanded eligibility framework allows greater support for industrial infrastructure, research and technological innovation. However, direct purchases of weapons and ammunition remain outside the bank’s eligible financing activities. This distinction reflects an approach focused on strengthening industrial capabilities rather than financing military procurement itself.
Greece’s ambitions extend beyond securing capital. Domestic manufacturers are attempting to move from developing prototypes and specialized technologies to establishing reliable production systems, winning long-term contracts and entering international supply chains. Industry representatives argue that the country already possesses technical expertise and a skilled workforce capable of supporting more substantial participation in European programmes.
The Hellenic Manufacturers of Defence Material Association, known as SEKPY, identifies sensors, surveillance systems, critical infrastructure protection technologies and vehicle-related equipment among the areas in which Greek companies have developed capabilities. These specializations could create opportunities for collaboration with larger European contractors seeking additional suppliers and technological partners.
Yet access to international markets requires more than technical competence. Manufacturers must demonstrate production reliability, meet demanding procurement requirements and establish relationships with established defence companies. Participation in European research initiatives can strengthen credibility, but commercial contracts remain essential for translating technological development into sustainable industrial activity.
Administrative delays present another obstacle. SEKPY representative Sotiris Kokkinos has warned that procurement procedures can move considerably more slowly than technological innovation. Products developed for rapidly evolving security requirements may lose some of their competitive advantages before purchasing decisions are completed.
The association has consequently advocated creating a dedicated General Secretariat for the Defence Industry. Such an institution could improve coordination between government ministries, military authorities and manufacturers, helping align industrial planning with procurement schedules and technological priorities.
The broader European context offers both opportunities and competitive pressures. Governments are seeking to expand defence production and reduce vulnerabilities in strategically important supply chains. For smaller national industries, this creates potential demand for specialized components, research partnerships and manufacturing services. It also increases the importance of meeting common technical standards and demonstrating dependable delivery capabilities.
For Greece, domestic adoption of locally developed systems could provide an additional advantage. Operational use by the country’s armed forces would give manufacturers opportunities to establish performance records and strengthen their credibility when approaching international customers. However, procurement decisions, production capacity and commercial partnerships will determine whether those advantages materialize.
The EIB-backed financing arrangements provide a foundation, but they do not guarantee contracts, exports or industrial expansion. Their eventual impact will depend on how effectively financial institutions and manufacturers convert available resources into completed projects and commercially viable technologies.
Greece’s challenge is therefore both industrial and institutional. Establishing a stronger presence in European defence supply chains will require sustained investment, faster decision-making and cooperation between public authorities and private companies. The country’s future role in the sector will depend less on the number of prototypes developed than on its ability to manufacture, deliver and support technologies at scale.
Behind Every Decision, a Larger Consequence.