How an investment in the Greek defense industry’s production base supports the implementation of the EU’s new defense doctrine

The report by M. Draghi, former President of the ECB, published in September 2024 highlighted this “existential challenge” facing Europe and the need to rebuild it with a new “Marshall Plan”. Improving productivity, starting from the technological sector that creates innovation, and strengthening security are two key pillars of the development of the plan, for the activation of which investments of 750-800 billion euros are required annually.

In the crucial area of ​​security, the disruption of the defense equipment supply chain as a consequence of the long-lasting war in Ukraine created the need for a new European defense doctrine that will contribute to reducing dependence on external suppliers. With the aim of financing the EU defense industry. To meet this increased demand for ammunition, the European ASAP program was launched in 2023. The Greek defense industry secured 33 million euros in funding to upgrade its production line, thanks to the comprehensive proposal submitted by the EAS in collaboration with MSM Export, a subsidiary of the international industrial and technological group, CSG. The consortium aims to produce 155mm large-caliber ammunition at the EAS factory in Lavrio. With an additional 50 million euros in funding from CSG, a reliable and long-standing partner of NATO members, the ultimate goal of the consortium is the revival of the Greek defense industry.

In this way, CSG's investment serves a dual purpose: the recovery of an important sector of the country's productive sector, which has remained stagnant in recent years, and the substantial strengthening of its security on a new basis and with its own forces. The production of defense equipment in Greece aims primarily to strengthen the domestic defense industry but also to strengthen the Greek Armed Forces, whose needs will be covered as a priority. Thus, the investment serves the implementation of the "Agenda 2030" of the Ministry of National Defense, which will allow the country to defend its self-determination and sovereignty "from within". By supporting the implementation of the country's new doctrine for defense policy, the country also actively supports the European doctrine of "strategic self-sufficiency". Complementary to this effort will be the plan to create a Greek “Iron Dome”, i.e. a defensive anti-aircraft system to cover the country’s air defense, which is in advanced discussions.

The high know-how and cutting-edge technology of the CSG group, one of the largest producers of large-caliber ammunition in Europe, can unlock new areas of development for the domestic defense industry. Thus, Greece has the opportunity to become a strategic player in the production of large-caliber ammunition, a crucial sector for NATO and the EU, in the era of the revival of classic aggressive warfare. Strengthening the defense capabilities of Greece, a country with an important geostrategic role in the Eastern Mediterranean region, the investment will support Europe's autonomy in ammunition suitable for high-intensity warfare, thus filling the gap that has been created in recent years in the production of defense equipment and significantly strengthening stocks of critical defense material.

Through this vlue adding cooperation, Greece is expected to become only the 2nd country in Europe to produce TNT, an explosive material necessary for the charging of 155mm projectiles. The joint venture's ambition is to advance production to other high-demand products in Europe in the future. The CSG group's international customer network will facilitate the opening to new markets, opening a new, extroverted page for the EAS. The development of their production base will give them the opportunity to actively engage in export activity, contributing to the strengthening of the country's industrial power. Thus, Greece will be able to strengthen its position in the European defense production chain and become a reliable supplier of equipment for NATO members.

Overall, the strategic investment of the defense and technology giant CSG in the Greek defense industry, amounting to 50,000,000 euros, can be a vehicle for the implementation of the new European defense doctrine, contributing to the European effort to achieve strategic autonomy. In combination with the parallel development of an anti-aircraft and anti-drone dome "Iron Dome" over Greece, the country has a new opportunity to consolidate its position on the geopolitical chessboard of the East. Mediterranean, now contributing decisively to the stabilization of the region's regional security.