The Minister of National Defence Nikos Dendias met this Thursday, 17 July 2025, with the Deputy Minister of National Economy and Finance, responsible for Fiscal Policy, Thanos Petralias.
The focus of the meeting that was held at the Ministry of National Defence was the SAFE Regulation and the implementation of a deduction of 6% in favour of the Armed Forces Funds in the additional armament programme.
As regards the SAFE Regulation, Mr. Petralias noted that he will examine the possibility of increasing the fiscal space in order to incorporate the existing armament programmes.
Considering the increase in the defence spending under the 12-year Long-Term Defence Armaments Programme and the Rearm Europe, it was agreed that the annual deductions from defence spending in favour of the Armed Forces Funds should be calculated on the basis of the high average of the last five years, so that Fund assistance would be ensured.
Mr. Petralias agreed that any amounts exceeding the high average of the last five years should be made available for the Armed Forces’ housing programme, instead of being returned to the Ministry of Finance.
Mr. Dendias thanked Mr. Petralias for the cooperation and the assistance with the Armed Forces’ Housing Programme.
