The European Union (EU) is at a pivotal juncture as it seeks to reinforce its strategic autonomy through increased defense investments. President of the European Commission Ursula von der Leyen recently announced a significant financial commitment of nearly 800 billion euros over four years. This includes 650 billion euros through the activation of the escape clause, aimed at increasing defense spending by 1.5% of GDP, and an additional 150 billion euros from EU loans offered on favorable terms.
The ReArm Europe initiative reflects the EU’s strategic response to evolving global security challenges. The plan underscores the need for the EU to modernize its defense capabilities, strengthen its defense industry, and establish strategic depth. A key element of this strategy involves ensuring that all EU member states reach a minimum defense spending target of 2.5% of GDP. The European Commission’s five-point plan will direct funds toward essential areas, including:
- Missile defense systems
- Artillery development
- Ammunition and missile production
- Unmanned air and sea vehicles
The EU’s enhanced defense strategy also includes ongoing support for Ukraine’s defense efforts, reinforcing the bloc’s commitment to collective security.
Greece’s Defense Industry Poised for Growth
Greece stands to benefit significantly from the EU’s increased defense investments. The Greek defense industry is currently undergoing a major restructuring phase, securing notable co-production agreements and increasing its industrial participation in large-scale European defense projects.
The Hellenic Center for Defence Innovation (HCDI), under the oversight of the Greek Ministry of Defence, recently launched a call for interest in developing a Battle Management System and two types of unmanned surface vehicles (USVs) based on the operational needs of the General Staff.
Greek Defence Minister Nikos Dendias highlighted the strategic importance of boosting domestic production capacity, stating that “domestic production of defense capabilities is not merely a potential option but an existential necessity.” The aim is to increase the contribution of the Greek defense sector to the national GDP from the current 0.7% to a higher level, ensuring greater self-sufficiency and technological advancement.
Pantelis Tzortzakis, CEO of HCDI, emphasized that Greece’s defense industry is prepared to play a leading role in the modernization of the Hellenic Armed Forces.
DEFEA 2025: A Platform for Strategic Partnerships
The Defence Exhibition Athens (DEFEA) 2025 will serve as a critical platform for fostering strategic partnerships and showcasing Europe’s defense capabilities. Scheduled to take place at the Metropolitan Expo Athens from May 6 to 8, 2025, DEFEA will host:
- 415 exhibitors from over 32 countries
- 18 National Pavilions representing leading defense industries
- Top-level participation from European and NATO organizations, including DG DEFIS, EDA, OCCAR, and NSPA
DEFEA’s successful Matchmaking platform will once again facilitate B2B and B2G meetings, building on the success of previous editions that resulted in numerous strategic agreements.
DG DEFIS will also host a special event focused on the European Defence Fund (EDF) and the European Defence Industrial Development Programme (EDIDP) — key instruments in achieving the EU’s strategic autonomy.
DEFEA 2025 will highlight the growing role of Greece’s defense sector, with 130 Greek exhibitors expected to participate. This reflects Greece’s rising prominence in the European defense landscape and its capacity to contribute to the EU’s broader strategic goals.
Conclusion
As the EU moves toward greater strategic autonomy, increased defense investments and partnerships will play a crucial role in reshaping Europe’s security landscape. Greece’s defense industry stands ready to capitalize on these opportunities, with DEFEA 2025 positioned as a key event to drive collaboration and innovation in the defense sector.
