In a recent letter to the Greek government, which the US embassy has also received, American officials are calling for a meeting with the relevant ministers to approve the immediate production of 1 million missiles worth €2 billion. However, concerns exist that some parties may obstruct the urgent US proposal for €2 billion in Greek ballistic production, potentially leading to the production line being moved to Turkey or Albania.
This situation represents a pivotal development for Greece’s defense industry, as the US aims to invest in Greek Defense Systems (EAS) to meet the needs of the US armed forces. To provide context, the only existing proposal for the struggling EAS comes from a consortium of Czech and Slovak firms, offering €90 per projectile, compared to the Americans’ proposal of €2,000 to €2,500 each.
According to information from US sources, the letter sent to the Greek government and relevant ministries highlights the urgency of initiating ammunition production lines within the framework of strategic defense cooperation between the US and Greece (MBDA).
The US Embassy has emphasized the importance of the Upgraded Memorandum of Mutual Defense Cooperation, urging Greece to prioritize this agreement. The proposal addressed directly to Prime Minister Kyriakos Mitsotakis, stresses the critical need to commence production of 155mm projectiles to satisfy the requirements of the US Army and other countries outside the EU.
While this project promises significant profits for EAS and substantial economic and geopolitical advantages for Greece, certain groups appear to be creating barriers to US-Greece relations, possibly jeopardizing this key opportunity for the revival of Greek industry.
At a time when the global defense industry is booming due to conflicts in Ukraine and the Middle East, it is puzzling why some in Greece are hindering EAS’s efforts to pursue this project, with some interests trying to limit it to a small subsidiary that could access European subsidies.
Discontent is mounting among those trying to engage with the government, as they are directed from ministry to ministry, each claiming to lack authority. US sources have cautioned that if this bureaucratic delay persists, they may retract their proposal and turn to factories in Turkey or Albania, both of which are NATO allies.
The Ministry of National Defence has stated they are not authorised to comment on the issue. Instead, they referred the matter to the government agency responsible for handling the EAS case centrally, while the full responsibility falls to the Ministry of Finance. Additionally, the Ministry of National Defence raised concerns about the tender procedure for a contract that has been awarded to the Czechoslovak consortium through an oral competitive tender process, which they assert takes precedence. This contract has been denounced by the employees, with concerns about the missiles’ final destination and suspicions of Russian interests behind them running rampant.
Furthermore, as revealed today, another peculiar development has emerged. Despite the American proposal, which, among other things, includes a binding contract and costed profits for both the company and the Greek government, and has even been communicated to the Board of Directors of the NSAs, it is surprising that Monday’s Board meeting did not include this proposal for presentation to the members. To clarify, there is an official proposal through the US Embassy of €2 billion, yet the members of the Board have not only been kept uninformed but they are also being asked to decide on “the extension of the 90-day deadline for the drafting and signing of subsequent executive contracts for the commercial relationship of the consortium members and for procurement issues” by an additional 90 days, with the consortium failing to fulfill even the most basic obligations of the agreement.
This situation stands in complete contradiction to the orders given by the Prime Minister for the revival of Greek industry, as announced during the creation of the Public Park in Ymittos and the consolidation of the EAC with the transfer of all activities to Lavrion.
We contacted the Ministry of National Defence, from where we were informed that they are incompetent on the issue, referring us to the government that handles the case of the Hellenic Defence Systems centrally while the full responsibility falls to the Ministry of Finance. At the same time, the Ministry of National Defence raised the issue of the tender procedure for a contract that has been registered with the Czech-Slovak consortium through an oral competitive tender procedure which they say takes precedence.A contract that has been denounced by the employees, as we have written in enikos.gr, with the missiles not knowing where they end up and suspicions of Russian interests behind them running rampant.
To these, as we reveal today, another very strange development is added. Given that the American proposal, among other things, has a binding character (contract and costed profits for the company and the Greek government) and has even been communicated to the Board of Directors of the Hellenic Defence Systems, it is surprising that Monday’s Board meeting did not include the proposal as a presentation to the members. That is, to be clear, there is an official proposal through the US embassy of 2 billion, and the members of the Board are not only not informed but on the contrary are asked to decide on “the extension of the 90-day deadline for the drafting and signing of subsequent executive contracts for the commercial relationship of the consortium members and for procurement issues” by an additional 90 days, with the consortium not being able to carry out even the most elementary of what was agreed.
The above, however, is in complete contradiction with the orders seemingly given by the Prime Minister himself for the revival of Greek industry, when he announced the creation of the Public Park in Ymittos and the consolidation of the Hellenic Defence Systems with the transfer of all activities to Lavrion.
