Greece’s Economy Goes Khaki: €2.5 Billion Defense Investments in the Next Five Years

Greece is entering a new era of strategic investments, as funds expected to exceed €2.5 billion over the next 4–5 years from SAFE, the European Investment Bank (EIB), and unused resources from the Recovery and Resilience Facility (RRF) and ESPA, open the door for major “big business” in defense.

The European Union is shifting focus from green development toward strategic autonomy, with the new European Defence Industrial Programme (EDIP) gradually replacing the RRF. These programs will finance not only military systems but also dual-use infrastructure like bridges, hospitals, and critical regional facilities.

The EIB has tripled its available defense package to €3 billion, with Greece taking a leading role, while Greek businesses of all sizes can access funding for projects starting through 2028, emphasizing domestic added value and cutting-edge technology.

A New Economic-Military Doctrine

The doctrine is changing: from green recovery to strategic autonomy, and from the expiring RRF (August 2026) to “khaki” EDIP.

Under these new programs, financing will not only go toward frigates, fighter jets, aircraft, and cannons, but also projects that benefit citizens, such as hospitals, bridges, and regional airports. Additionally, Greek companies that strategically leverage this opportunity could expand into the Greek and international markets, following the example of Nokia, which began by producing military boots before becoming a European tech powerhouse.

Defense Driving Economic Policy

Geopolitical instability is no longer theoretical—it now guides economic policy. German Defense Minister Boris Pistorius recently warned of a potential NATO–Russia conflict before 2029, while Polish Chief of General Staff General Wieslaw Kukula described Poland as in a “pre-war phase.”

In Greece, the legal framework for this investment surge is already in place: Law n.5246/2025 provides €150 million in enhanced depreciation for investments in:

• Military vehicles, helicopters, drones, and related machinery
• Electrical and electronic equipment for military vehicles
• Components and parts for mechanized systems

Eligible recipients are companies with headquarters or branches in Greece, regardless of size, for projects starting 2026–2028.

The Next-Generation Defense Fund

The €150 million is only the beginning. With SAFE, EDIP, the EIB, and leftover RRF/ESPA funds, Greece can mobilize over €2.5 billion within five years.

The new model emphasizes dual-use projects and domestic added value:

• Infrastructure for All: Bridges, airports, road networks, and hospitals in remote regions benefit both the military and local citizens.
• Jobs for All: Thousands of components in military systems will be produced by Greek companies.
• Cutting-Edge Technology: Drones, satellite communications, AI software—military products that can also be commercialized.

Through this approach, the Greek economy transitions from green development to “khaki” growth, linking strategic autonomy, technology, and European funds in a dynamic five-year horizon.

Source: pagenews.gr