Deputy Minister of National Defence Giannis Kefalogiannis Participates In 3rd Delphi Brussels Forum

January 31, 2025

On Thursday 30 January 2025, the Deputy Minister of National Defence Giannis Kefalogiannis participated in the 3rd Delphi Brussels Forum, held in Brussels, where the current challenges to the EU defence industry and prospects for reinforcing strategic alliances were discussed.

Mr Kefalogiannis, among others, stated:

Concerning the Prime Minister’s initiatives alongside his Polish counterpart for the creation of a common air defence shield of Europe and our country’s vision for the European Union’s Defence policy.

Russia’s aggression against Ukraine has brought the challenges facing the European defence industry to the fore, with the matter of armaments gaining crucial importance.

According to the European Defence Agency, the EU member-states have considerably increased their defence spending in recent years. Compared to 2021, total spending is equivalent to roughly 1,9 % of the EU GDP, including 102 billion euros of investments in the defence sector. At the same time, according to analysts, Russian military production exceeds the West’s, having greater capabilities now than at the beginning of the war in 2022, despite the considerable Russian casualties. Consequently, the crucial question here is: How can we balance this asymmetry?

We are aware that heads of state and governments of the EU have agreed to raise defence spending and reinforce innovation through the European defence industry. The European Commission has also expressed a strategic interest in developing an industry which can provide functional and complete weapons systems to the EU member-states’ armies. I completely agree with the President of the Commission, Ursula von der Leyen, in promoting this simple principle on defence that Europe ought to “spend more, better, and spend European” in order to be ready to “respond to the most extreme military threats”.

Raising demand for weapons developed and produced in the EU will lead to greater strategic independence, especially if NATO comes under pressure during the second Trump administration. We are still far from achieving this target, to be honest. The main problem is that the European defence marketplace remains fragmented. The absence of common procurement and national preferences in defence spending translate to small markets with low production levels, a fact that is one of the main factors for the comparatively high cost per production unit.

What should be done then? In my opinion, it is urgent to determine how to raise production capacity, how to lower costs, how Europe will reinforce her basic military-technological capabilities, and how to find the necessary funds. Achieving economics of scale and efficiency requires capital, both for demand and supply. Concerning demand, fiscal limitations of European countries affect the trustworthiness of long term government goals.
This applies to medium-term German planning, as well as to other EU countries with uncertain fiscal prospects (e.g. France and Spain). The exemption of certain agreed spending programmes for defence priorities of the EU from fiscal limitations could be a solution. Concerning supply, improving access to funding for these companies should constitute a priority. Institutions such as the European Investment Bank should re-examine the ban on the provision of financial support for defence projects. This would send a positive message for defence investments. Furthermore, the stigma which companies face from investors and society should be treated as a priority, so that funding reaches not only large, but also medium-sized companies and start-ups, which are important for innovation and the mass production of unmanned aerial vehicles, anti-drone, electronic warfare, and information gathering systems.

The Hellenic Government’s vision is a common defence policy. From the northern and eastern European frontiers to the south, we are facing revisionist agendas and violations of international law. These challenges underline the urgent need for a common European answer. No member-state has the ability to face these challenges independently. For Greece, reinforcing the defence and security mechanisms of the EU is a strategic priority in order to create a powerful defence pillar in the EU. The initiative of Greek Prime Minister Kyriakos Mitsotakis and Polish Prime Minister Donald Tusk for the creation of a European air defence shield falls within this framework. This will incorporate allied and national approaches, increasing the cohesion of the various fragmented and different countries systems. In the face of multiple current and future threats, we need a comprehensive defence planning for European air defence, and the development of a system, capable of responding to Pan-European needs. We are already moving toward the development of our air defence shield, anti-drone and anti-missile defence, and I am sure that Greece has much to contribute towards this effort.

Concerning the effort towards contributing to Research and Development (R&D) and the creation of a defence innovation ecosystem through the creation of the Hellenic Centre for Defence Innovation.

Greece should not be exclusively dependant on the import of weapons systems from abroad. It is more costly, less productive, and at times more risky. Our Armed Forces should rely more on their own capabilities. The strategic autonomy of a country depends on this capability. This is not immediately feasible, but the first step is decisive. We are not a country which lacks ideas and willingness in order for talented young people to be involved in entrepreneurship. The question is, how to orient these ideas towards the needs of the Armed Forces. It is crucial, therefore to find an institutional way for the Armed Forces to communicate their long-term armaments planning and needs for new systems. This is the task of the Hellenic Centre for Defence Innovation.

In this way, start-up companies and companies in the domestic defence industry will be able to develop their own business plans and steer their investments and facilities towards the needs of the Hellenic Armed Forces. Through the Hellenic Centre for Defence Innovation, we seek to develop institutional processes which will allow the technology and innovation produced in our country to be integrated into the Armed Forces. The Hellenic Centre for Defence Innovation is an innovative organisation which promotes dual-use technologies and defence innovation in Greece. Its main activities include the support of Research and Development for advanced defence technologies, as well as fostering an ecosystem of innovation, which responds to existing operational needs.

Undoubtedly, our vision is that the Hellenic Centre for Defence Innovation will soon be a crucial element in the strategic autonomy of the EU. The prospects are positive. Within its first months of operation, the Hellenic Centre for Defence Innovation has managed to develop an innovative anti-drone system for warships, named “Kentavros”, which is already operational in the EU mission “ASPIDES” in the Red Sea.