Abstract
The Greek defence industry is composed of both large state-run firms and a
number of small and
medium-sized businesses, which are primarily geared
towards handling sub-contract work for the bigger
state-owned enterprises.
Greece is a major importer of arms, but the Ministry of Defence is
gradually
shifting to more domestically supplied weapons. The goal of the
government is for Greece to eventually
rely solely on domestically
produced armaments.
In pursuit of this goal, the Ministry of National
Defence is in the process of modernising the Hellenic
defence industry and
upgrading its technological infrastructure. The hope is that this will not
only result
in their playing a greater role in major armaments programmes,
but also boost their exports.
However, the economic downturn is likely to
curb the amount Greece is able to spend on developing its
defence
industry. Greece has spent more than it earns in tax receipts, resulting in a
swelling budget
deficit. Consequently, companies are focusing on building
international partnerships. Hellenic Aerospace
Industry said in November
2008 that it would help build the new MC-21 plane from Russia' s Irkut. The
passenger plane could become a rival for the Airbus 320 and Boeing 737.
On
the domestic security front, discontent with the government' s policies on
education and jobs has been
growing amid the economic downturn. The
country experienced some of the worst riots it has seen since
World War II
in December 2008 after police shot dead a teenage schoolboy. Anarchists are
also ramping
up their activities and pose a threat. On the international
front, Greece' s opposition to FYR Macedonia' s
entry into NATO is likely to
remain a thorny issue, especially after Croatia and Albania became members
in April 2009.
Greece' s defence budget has declined in recent years as the
nation has struggled from budget constraints.
The country is still
struggling after spending heavily for the 2004 Athens Games. The global
financial
crisis has only exacerbated its budget woes. Greece may come
under further pressure to reduce spending
on weapons. Industry experts do
not foresee governments significantly altering current defence budgets,
but they anticipate a regional trend of lower spending across Europe.
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