Ministry of Defence tightening the belt

Minister of National Defence Nikos Dendias has reportedly decided to redo the long-term planning of armament programmes.

According to media reports, Dendias and his colleagues concluded that there is a problem of payment not only for new armament programmes, but also for already active programmes.

In the news reports, it was claimed that it was decided to suspend some financing and infrastructure projects until their necessity was reviewed.

It was pointed out that delays in the field of armaments would not affect programmes of great political importance, such as the F-35 procurement.

Among the programmes suspended are the renewal of MLRS M270 multiple rocket launchers and the purchase of new corvettes.

The €190 million project to upgrade and expand the infrastructure of the Crete naval base facilities, estimated to cost €190 million, has also been put on hold. However, since the region in question is important in terms of access to the Eastern Mediterranean, it is estimated that the postponement will not be very long-term.

The suspension of the operation of the port in Pagasitikos Bay, which has been under construction in recent years for the transport of armoured ships belonging to the Navy, is expected to be more long-term.

It is reminded that these projects are fully financed from national resources and therefore their implementation is closely linked to the margins of the budget.

The fact that Finance Minister Kostis Hajidakis listed defence spending as one of the three main factors preventing a significant reduction in VAT is also claimed to be evidence of the shortage in this area.

In the meantime, it was also stated that the force directorates were asked to indicate their requests in order of absolute priority.