Greece Seeks €1.2 Billion EU Loan for Military Purchases

Greece is set to apply for €1.2 billion in low-interest loans from the European Union to support its defense procurement efforts.

Prime Minister Kyriakos Mitsotakis announced this move, as reported by Neos Kosmos.

The application will be submitted as early as Tuesday under the EU’s new SAFE (Security Action for Europe) program, which offers up to €150 billion in funding over a 40-year period.

The financing will fast-track the modernization of Greece’s armored vehicles and logistics capabilities, including upgrades to M113 armored personnel carriers and the acquisition of new military trucks.

According to the Prime Minister, these projects were initially planned for a later phase of Greece’s 12-year military rearmament program, but thanks to EU funding, they can now be completed earlier.

Mitsotakis also emphasized that the government reserves the right to submit additional requests if needed.

In response to criticism from the opposition, Defense Minister Nikos Dendias stated that negotiations regarding EU funding fall under the government’s overall authority, not solely the Ministry of Defense.

Applications to participate in the SAFE program were required by the end of July, and the funds can be used until 2030.

Militarnyi previously reported that the French company KNDS France and the Greek firm METLEN Energy & Metals have partnered to produce the VBCI Philoctetes infantry fighting vehicle, with hull manufacturing set to take place in Greece.

The agreement includes transferring know-how on aluminum armor production to the Greek company, as well as local manufacturing of the welded hull structure for the VBCI Mk2.

This deal is primarily intended to meet the urgent operational needs of the Greek Army for a large number of infantry fighting vehicles, while also considering the requirements of other European armies.

The VBCI Philoctetes is an enhanced version of the VBCI infantry fighting vehicle already in service with the French Army. It features a remotely controlled combat module equipped with a 40mm cannon and MMP anti-tank missiles. The vehicle has an 8×8 wheeled configuration, and its armor protection is provided by the hull and add-on armor modules, which can withstand hits from 14.5mm caliber rounds as well as shaped-charge warheads from RPG-7s.