The European Union stands at a pivotal moment as it confronts significant decisions regarding its strategic autonomy. The EU is preparing to allocate substantial funds to rearm its member states and bolster collective defence. The President of the European Commission, Ursula von der Leyen, announced that nearly 800 billion euros will be made available over a four-year period. Of this amount, 650 billion euros will stem from the activation of the escape clause, aimed at increasing defence spending by 1.5% of GDP, while an additional 150 billion euros will come from EU loans offered on favourable terms.
The ReArm Europe initiative is driven by rapid international developments and the pressing need for the European Union to achieve defence autonomy. To adapt to the new security architecture, the EU must not only massively increase its armament expenditures but also revitalise its defence industry and establish strategic depth. Beyond meeting its own needs, it is considered a given that the EU will also be compelled to support Ukraine’s defence efforts.
Alongside existing mechanisms such as the European Defence Fund (EDF), the European Commission is developing a five-point plan to ensure all member states reach the minimum target of 2.5% of GDP in defence spending. In addition to the escape clause and the 150-billion-euro loans, the Commission intends to channel more funds from the EU budget and private capital into key areas such as missile defence, artillery system development, missile and ammunition production, and unmanned vehicles for air and sea operations, among others.
Greece’s Opportunity
The EU’s mobilisation creates a window of opportunity for the Greek defence industry, which is currently in a phase of restructuring. Companies within Greece’s domestic defence ecosystem are securing significant co-production agreements for weapons systems, while the country’s industrial participation in major defence projects is on the rise. At the same time, the Hellenic Centre for Defence Innovation (HCDI), overseen by the Greek Ministry of Defence, has launched its first call for interest in developing a Battle Management System and two types of unmanned surface vehicles (USVs) based on the requirements of the General Staff.
“This marks a milestone for our country’s defence capabilities. Domestic production of defence capabilities is not merely a potential option but an existential necessity,” Greek Defence Minister Nikos Dendias emphasised in a statement. He highlighted that the goal is “a significant increase in the contribution of the Greek defence ecosystem to GDP, from its current level of 0.7%.”
“We are pleased to present a significant opportunity for the domestic ecosystem to play a leading and proud role in the major task of modernising the Hellenic Armed Forces,” noted Pantelis Tzortzakis, CEO of HCDI.
Spotlight on DEFEA
Visitors to DEFEA – Defence Exhibition Athens 2025, the premier defence and security exhibition, will have the chance to meet representatives of European and NATO organisations as well as leading defence manufacturers from around the world. The event will take place at the Metropolitan Expo Athens from May 6 to 8, 2025.
A total of 415 exhibitors, including top companies, startups, institutions, research institutes, and universities from at least 32 countries, with 18 National Pavilions will participate in DEFEA.
This year, the highly successful Matchmaking platform will once again facilitate B2B and B2G meetings, building on its track record of yielding dozens of significant deals during the previous edition.
European bodies such as DG DEFIS, EDA, OCCAR are exhibitors and will be represented at the highest level. DG DEFIS will host a special event on the European Defence Fund (EDF) and the European Defence Industrial Development Programme (EDIDP) – key tools for the EU’s strategic autonomy.
NATO organisations, including the NSPA and the DIANA program for accelerating defence innovation, will also have a strong presence. Meanwhile, Greece’s defence ecosystem will be showcased by 130 exhibitors.
Register to attend: https://defea.gr/pre-registration/
