Greek defense companies are showing strong interest in joining the new Development Law regime to enhance defense, particularly in dual-use technology for military and civilian purposes.
The Greek government has introduced a new Development Law aimed at bolstering the country's defense industry with an investment of 150 million euros, predominantly through tax incentives and investment rewards. This initiative emphasizes the use of dual-use technology, which can serve both military and civilian needs. The proposed law is currently open for public consultation until March 13, 2026, allowing stakeholders to provide feedback on the reforms intended to strengthen Greece's defense capabilities.
The law outlines significant support for investment plans geared toward critical defense sectors, particularly in the production and manufacture of vehicles and aircraft. Eligible investment plans are defined under specific activities, such as the production of weapons, munitions, motor vehicles, and electronic equipment. Aiming to enhance the Greek defense ecosystem, the program promises to cover up to 75% of associated eligible expenses, marking a strategic shift in the country's approach to strengthening its military capabilities through domestic production.
As geopolitical tensions continue to rise across Europe, particularly due to the ongoing conflict in Ukraine, this initiative represents Greece's proactive measures to fortify its defense structures. By enhancing local defense manufacturing, Greece aims to reduce dependency on foreign defense supplies and foster technological innovation within the sector, thereby ensuring national security and boosting economic growth in a critical area.
